Some Irish investment managers are predicting a general decline in stock prices. Bank of Ireland Asset Management (BIAM) believes a silent bear market is under way. Under the headline statistics, however, it believes technology and telecom stocks are expected to outshine all others.

The reasons for these sentiments are numerous. The investment environment shows moderate growth and low inflation; interest rates are no longer a positive; it's more difficult to make money and valuations remain high but are improving, says BIAM.

In 1998, a range of major companies warned that their profits would not meet expectations. Market adjustment has already started as two-thirds of all US stocks fell last year and half of all Irish stocks failed to beat the returns on cash. Against this backdrop and because of BIAM's conservative nature, it believes it is prudent to hold more cash and bonds than normal in investment portfolios.

Standard Life Investments is also predicting lacklustre stock market performance towards year end and beyond due to inflation worries and disappointing company earnings news.