Sally McCrone: Where to look for money happy returns

Harrison says that while there is certainly a shortage of bargains, what is out there is not expensive. Some of the blue- chip stocks, such as food retailers and banks such as HSBC and Royal Bank of Scotland, look like better value than some other sectors. Oil companies are surprisingly undervalued considering the fact that the oil price has been shooting upwards.

And, despite the healthy growth in the mining stocks, he believes there is still more mileage possible, so long as investors pick the individual companies carefully.

Justin Modray, of London-based investment adviser BestInvest

Modray also believes there is value remaining in the stock market, but urges investors to consider 'sensible asset allocation'. This includes looking to emerging markets such as the Bric countries: Brazil, dominated by commodities; Russia, by oil and gas; India by software; and China by manufacturing. Modray says: 'I would not put more than 5 per cent in any single market, so that you don't lose your shirt.'

Commercial property may be 'a bit toppy', but Modray says that growth is forecast by the Royal Institution of Chartered Surveyors to be 17 per cent this year and 9 per cent next: 'Commercial property offers income as well as an increase in capital values,' he says. 'The latter has played a big part in the recent returns and you could ask just how far can it go. But the attraction is that rental agreements are often for 20-25 years.'

Modray says property funds might be worth considering and sees the launch of Real Estate Investment Trusts as providing further opportunities.

Mark Dampier of Bristol-based investment manager Hargreaves Lansdown

Dampier believes the stock market could bear more fruit, but suggests that picking top-notch fund managers is a more appropriate strategy for equity investors than being overly obsessed with asset allocation.

He points to Neil Woodford, manager of Invesco Perpetual's income funds; Nigel Thomas, manager of Axa Framlington's UK Select Opportunities Fund; Ian McVeigh, manager of Jupiter UK Growth; and Stephen Whittaker, manager of NewStar UK Growth.

For geographical diversification, he likes Hugh Young, manager of Aberdeen's Far East Fund; David Mitchinson of the JP Morgan Japan fund; and Philip Wolstencroft of the Artemis European Growth fund.

Dampier is not keen on property as an investment: 'Commercial property is highly illiquid. You need to know you have an exit route, although REITs [real estate investment trusts] might be a solution. I like residential property even less. If it's your own home you're talking about, you are only richer when you are trading down. Buy-to-let investors have done well over the past 10 years, but I think it was more through luck than judgment.'

He says there is a strong argument for cash at the moment, despite stubbornly low interest rates: 'It is a good idea to keep quite a bit in cash - then you have the flexibility to pounce when investment opportunities arise.'

· Heather Connon is on holiday