Investors not averse to risk may find good buying opportunities in coming weeks in volatile global equity markets. Nobody is yet prepared to call the bottom of the market and investment advisers are telling cautious clients to stay on the sidelines until some visibility develops, but investors prepared to take risks and who have a three- to five-year investment horizon could do well by moving into equities now.

With share prices well down on market highs and on pre-September 11th levels, some shares and sectors have been oversold in the aftermath of the terror attacks on the US. It is now a question of sifting through the information and forecasts available to try to pick these shares. Careful stock picking should be rewarded.

Advisers say there is no point in buying into defensive stocks - they have already bounced in the flight to safe havens. They suggest going for shares that have been hit hard in the latest rout, including hotel and leisure sectors, and picking companies with strong balance sheets and a wide earnings spread.

Alternatively, investors could buy index trackers.

But advisers are stressing the health warnings. Global stock markets are in uncertain territory and uncertainty drives volatility. They are unlikely to hit bottom until there is some closure on the retaliation front and some visibility on the key reaction of the US consumer. Cautious investors are being advised to go for deposit accounts that offer a good floor rate and flexibility, so that they can move funds back into equities at short notice.