moving more to cash, page-6

"I locked in 6% term interest rate for my SMSF a few years ago, being 70% cash and 30% equities, term ends next year. I'm happy to leave this mix for the moment as preservation of capital is my main concern as I convert to pension phase next year as well."
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Similiar for me. Sabbath. I'm in my last year of 8% interest rate (seems hard to imagine now, doesn't it) and also have subsequent 5 year TD at 6% which has three more years to run.

Along with an annuity (6% lifetime) and some high yield shares, the p/f will still return about double what I need to live on when the rate reduces, so I'm cautious about putting more into the market. Mostly because I think the US market is artificially inflated with all the QE money that has to find a home in an environment where interest rates for cash are almost non-existent.

On the same basis I don't see the high yield solid companies here like the banks, WOW, WES, etc taking too much of a down turn while banks continue to lower what they're prepared to pay on cash, either TD or at call.

There is presumably a considerable amount of cash flowing into Australia at present from the rest of the world, because of sub zero interest rates etc and until this changes it's hard to see our bank interest rates here going up much even if the Reserve Bank eventually lifts the cash rate.

I might be completely wrong on all the above. Just how I see it from my own situation.