I am all out since last week. I feel that prices have to drop a lot more before there's anywhere near a balance in the risk/reward ratio. Seems like risk of massive loss outweighs any likelyhood of large potential gain due to the factors you mention - low economic growth, EU timebomb, 2 speed economy in Oz.
I am preserving my capital to take advantage of another panic attack in the markets. I've lost 50% of my profit for the last 10 years, but I'm still ahead and in the game.
Waiting now until 2012 before considering going back in.
