According to the research and data firm, science and technology, and telecommunications funds, the two most beaten-down sectors this year, showed gains of 17% and 14% respectively last month which represented a near replay of October's events.

Speaking to Lipper's parent company, Reuters with regard to the new figures, Earl Gaskins, MD for large cap value products at Brandywine Asset Management explained the reasons behind the upturn:

'In terms of psychology, back in July and August people were actually looking for reasons for the market to go down. It was a 'sell first and ask questions later' attitude.' Now, according to Mr Gaskin, investors are more optimistic about the outlook for stocks - partly as a result of slight returns in money market funds, and partly because they believe that the easy money has been made in bond funds.

However, not everyone is so optimistic. Also talking to Reuters on Tuesday, Ed White, Senior Vice President at money manager Gannett, Welsh & Kotler warned that:

'I don't think this is the beginning of a great new bull market. There are still too many issues for the economy and earnings.'