Of course, we are far from out of the woods. But that does not mean the optimism is not well founded and the underlying uptick it is based on very real.

Does this mean equity returns will similarly increase in the coming months? Well, this supposes that equity returns have been subdued in recent times as the economy has languished. Nothing could be further from the truth.

So if equities soared when times were bad, what will they do now that the economic good times are back - will they remain countercyclical and plummet as a valuation bubble inflated by a surge inflows bursts, or will they continue to rise as improved sentiment feeds into higher earnings?

This special report will examine the UK equity sector and its prospects in the months ahead, with a special focus on the small and mid-caps that have driven the recent upward trajectory and the healthcare sector that is leading an M&A renaissance.

This special report is sponsored by Franklin Templeton Investments. All editorial is independent.