The ASX S&P200 has been bouncing around between 5,000 and 5,300 since August 24th. Since October 8th the S&P200 has consolidated at around 5,300. The US market is back close to where it was in August. The Australian economy is weak but perceptions are that we are better off economically under a Turnbull led Government.
In looking at the charts and the macro-economic conditions, it seems that the market is probably not going to fall much further. Hence, it seems timely to review my smsf strategy again.
In view of a sluggish Australian economy, I am increasing investment in US, global and emerging markets via managed funds and etfs. I am reducing the total number of Australian investments, focussing on a smaller number of Australian stocks yielding good fully franked dividends. I will be increasing the investment in some of these stocks. This will leave just under 30% of the portfolio in cash and enhanced cash.
