The last few years investing in the banks and telstra has been a good place to be and you would not want to much in resources especially iron ore.
My opinion is that many brokers tell you to diversify and I think this can be a cop out and a strategy not to loose money rather than a strategy to make money,why would you want to invest in a sector that is not performing and may not perform for years you need to be invested in sectors that are performing and that means keeping your eye on the ball.
My SMSF we decided that we need a minimum of $52,000 pa at 4% so we needed to produce a 25% higher return at 4% so that the ups and downs of the share market could be smoothed out.The worst thing that can happen is when you have returns that are to thin and have to sell shares at depressed prices to live.
