Last September, I set out some thoughts on the market and highlighted the concerns as well as the positives. I ended the article with the thought that the FTSE 100 should rise, steadily.

When I wrote that article, the FTSE 100 stood at 5494. Little did we know that on April 21 this year, the market would peak at 6132 - a rise of 11.6 per cent in a little over six months is not sustainable or rational.

As I write, the market has suffered a setback to its current level of 5696. This gives a rise of 3.6 per cent over that period.While there is talk of us now entering a bear phase following a three-year bull run, this is not rational either.

There is talk of a bubble' in the commodity prices - but China and India cannot shovel the stuff out of the ground quick enough,and this demand could be sustained for the next generation.

The Chilean Government owns the world's biggest producer of copper, Codelco. While Chile has an abundant supply of copper, it does not have an abundant supply of the tools it needs to get it out of the ground - and so the high price of copper is supported by such global constraints in the face of rising demand.

Those of you with long memories will recall our recommendation to buy Fidelity Special Values in March 2005 at 419p.This investment trust peaked at 557p in April this year, and has since fallen back to 520p.The trust is run by a highly-regarded fund manager,Anthony Bolton, who took out a three-month put option on the FTSE in April because he was uneasy about the rapidity and length of the rally'. He timed it beautifully.

Journalists have scaremongered the markets and tainted certain stocks, such as Vodafone, with doom and gloom scenarios.Equities are enjoying strong earnings, and the markets have been buoyed by a flurry of mergers and acquisitions.

The simple fact is that we are in a global economy and the UK markets reflect that. Despite weakening political support for George Bush,the weak US dollar and the massive trade deficit,the US economy is robust.

Valuations are not as low as they were a few years ago, but neither are they expensive by historical standards. With an institutional wall of money and investor confidence persisting, the FTSE 100 should find support at this level. And up we go but, please, just steadily.

With the market at this level,we would be buying BHP Billiton, Vodafone, Royal Bank of Scotland, Morrisons, British Telecom, British Land, and Tullow Oil.

WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.