Keith Wade, chief economist at Schroders, says he had been expecting a slowdown in profits as the rapid rate of growth of the last couple of years was unsustainable. He is confident this is just a 'soft patch' rather than a procession towards a general economic slowdown, as jobs growth is coming through and the continued strength of the housing market keeps consumers shopping.

Ewen Cameron Watt, head of investment strategy and research at Merrill Lynch Investment Managers, points out that the US market suffered similar jitters when quarterly statements were released last July and Octo ber, reflecting the fact that growth - whether of profits or the economy as a whole - is key to sentiment. He thinks the gloom is overdone and there are reasons to be positive. But he describes the market as like a corrugated iron roof and says that timing of purchases is vital.

There is certainly a risk that the stock market, both here and in the US, could weaken further before it rallies again, says John Hatherly, head of global analysis at M&G - particularly given that the traditional advice is to sell in May and go away. That did not hold good last year: the market rose slightly between May and St Leger's day in September - and Hatherly thinks it may not be the best advice this year either, provided the US data holds good.

Edward Bonham Carter, chief investment officer at Jupiter, says there are still plenty of companies with the potential to grow earnings and dividends which are available at reasonable earnings multiples. Opinions on which differ, but recent results from companies such as Tesco, Wolseley and Royal Bank of Scotland qualify them for inclusion.

Those who are wary of betting on winners, never mind the best time to buy them, should drip money in steadily through regular savings: M&G's income fund or Jupiter's income trust are two possible good homes.

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