Hi stephenp, It is a hard one to call, however from what I read...

Hi stephenp,

It is a hard one to call, however from what I read it seems we have a little more left in the bull phase before it tires out and starts to fall away.

There is no doubt that there will be the occasional correction along the way.

I have found most old time investors that I speak with believe that the market today is not as predictable as has been in the past.

With this in mind it may be the best idea to be somewhat cautious and try to read and react to the signs that leed to a major correction that best suits your level of comfort and risk.

I am currently 10% cash and looking to be 50% cash by the end of the year.

I am currently trading out of my small to medium cap stocks to build up and strengthen my portfolio with the more defensive stocks.

During the GFC I was 50/50 and the stocks that remained in my portfolio were in the top ASX 20 and still returned good dividends even though their price fell away.

The 50% cash enabled me to sit on the bench for a while and pick up some bargains as the dust settled.

It is important to build a portfolio of financial healthy stocks at this stage of the cycle to battle the head winds when they arise.

I found this strategy worked well for me and allowed me to sleep at night.

I wonder at times how many SMSF investors follow and monitor the financial scene and interface it with their investment strategy/plan and make the necessary adjustments to their portfolio in readiness for a swing.



Cheers
Wombat