I am in pension phase, have another significant separate income stream outside super and have 43% in defensive investments (cash, infrastructure, property) and 57% in stocks, mostly EFTs. 4% of the defensive investment is in a hedge fund. I probably should have a bit more in defensive and a bit less in stocks but having been investing for 40 years and survived numerous downturns and always recovered well with this sort of strategy. I am comfortable with the risk given the other income stream. It does not keep me awake at night.
For people who are not nearing retirement and are still in accumulation phase, I think 60% cash is too high unless you are nimble and active in switching. Picking the bottom of a fall and timing the market is incredibly difficult.
This situation is most difficult for people nearing retirement ie in the next 1-2 years. 60%+ cash would seem wise. After the way the market finished on Friday, next week might be a good time to sell or switch.
