Early 2009 , was an easy phase for seasoned investors as they could spot gold just walking on the road!!. Yes, most of the stocks were trading well below their real values. Anything you would have invested should have at least doubled by now. Having said that, it was only the people who were greedy when others were fearful and those who would have invested regularly ( say SIP) have benefited immensely out of the down turn.
2010 is showing a lot of promises (esp. media blowing a lot of good news like new jobs coming in, salary increments ,etc for Indian economy). But, the returns of 2009 would be unrealistic to expect from 2010.
At this stage there are a few who are sitting on decent profits from equity. So, the question is whether to stay invested or reap the rewards. If you are in need of money in next two, three years time frame , it may be prudent to book profits at least partially (depending on your need). However, if you are ok to hold your money for a long time, say 5 years then you may choose to hold on. The west is not completely out of the woods. So , FII flows, fluctuating exchange rates might lead to volatility of the markets.
It would be interesting to see how the markets turn about. There are a lot of predictions about markets touching new highs. We know how predictions work:-).
But as a retail investor, following a path of extra caution while making investing decisoins( in 2010) would definitely help protect your money .