Columnists

Do you believe in the stock-returns fairy? This whimsical question is asked by US investment advisor William Bernstein, who finds it amusing that most people believe future returns are somehow linked to past returns.

Many years ago - well before computer games were dreamed of - there were a number of classic games that could be found in every takeaway bar in the country. One was modeled on a golf game, where you put 2c in the slot (I told you this was a long time ago) and, using flippers, attempted to move the money past some gaping holes in order to get your money back.

Successful investment requires a cool head. All too often, investors get caught up in the excitement of a market that is rising and pay too much for an asset, only to lose their nerve when the market is going down and sell at a loss.

Debate continues over whether the property market has bottomed. Some measures, such as affordability, have fallen from record highs but I think there is still a way to go before prices recover.

Managing other people's money is very much a trust business and the horror stories serve as reminders to investors that they should do some homework before signing up. Here are some tips.