Clem Chambers, chief executive of stocks and shares website ADVFN, wrote in the Scotsman that next year the markets would be “fragile and volatile”.

Despite efforts by central banks to improve the credit markets, Mr Chambers suggested that there is significant potential for “shocks” to hit the markets next year.

“This will mean that, whatever happens, the markets will be operating under a pall of uncertainty that will drag on any rallies,” he remarked.

According to the expert, this “difficult environment” could continue into 2009 as well.

A poll of independent financial advisers conducted by the Association of Investment Companies and Unbiased.co.uk recently revealed that 77 per cent expect the markets to improve in 2008.

However, fund managers remain more cautious, with 61 per cent suggesting that the markets would rise in the new year.

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