Investors’ confidence in U.S. markets and the economy has increased slightly, with 49% of investors polled expressing bullish sentiments about the markets, compared with 48% in January, 2010, according to the latest MoneyShow.com Investors’ Sentiment Indicator. The number of bearish investors has decreased to 32% from 34% since the last poll in January.

Investors’ favorite asset class is precious metals (gold and silver): Some 19% of those polled say precious metals will perform best for the rest of this year. They also like large-cap US stocks (15%) and small/mid-cap U.S. stocks (13%).

Investors expect inflation to remain constant (37%), while 60% of those polled don’t see the end of the U.S. recession until 2010 or later. A majority—60%—think we’re in a volatile market that won’t make big moves either way, while 41% believes the market will improve or remain the same.

On other topics, some 54% of investors said they expect Congress to pass some form of health-care reform by the end of 2010. Twenty-seven percent of individuals polled expect the Federal Reserve to raise interest rates and withdraw monetary stimulus, 37% believe that they will keep rates where they are, and withdraw monetary stimulus, while 35% expect that the Federal Reserve will trade less than last year.

The MoneyShow.com Investors’ Sentiment Indicator polled 456 investors from its member list between November 13 and November 17, 2009.