Quote Originally Posted by twotic View Post
I switched all our Kiwisavers to cash a while back. I figure anyone with a horizon of 15+ years would do well to ride the bull markets for a reasonable (low risk) length of time, switch to cash, wait for the next 40%+ crash and then switch back to growth once you see the up trend start again. Repeat, repeat, repeat and I would have thought you would do pretty well. You have to accept you will miss out on some of the bull run, and you have to have the ballz to get in again when stocks are down, but I think thats the best option.
Amen to that I switched to 100% cash some time ago and am still waiting for the 40%+ crash. If it happens I am a genius, if it doesn't I will continue to look silly. The kids are still in balanced funds as the amount of capital isn't large and there may be some truth to diversify and hold for the long term, specially as I am wrong a lot of the time.