Crispin Odey, the London hedge fund manager who piled into banks in time for their recovery earlier this year, has issued yet another bullish statement on the equity markets in his latest letter to investors. It comes after research published yesterday found that fund managers are increasingly optimistic about market prospects.

He wrote: "Every month seems to start with a sell-off which turns out to be the springboard to a further rise in markets. Having just come off the back of the strongest quarter for markets in 10 years, it is tempting to be cautious about prospects for this next quarter. Tempting but wrong."