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Spot on mate.

For what its worth:

- cash is likely to deliver negative real returns going forward;

- property is a good inflation hedge so when all the bleaters stop fretting about [whisper] deflation it will pay off. However if you buy a bulky goods centre in west Sydney you deserve to be boiled alive. To quote Mr Nulla, it is 'location, location, location' in the long-run, nasty deleveraged valuation correction in the short-term.

- fixed interest lookin' good for solid blue-chip citizens; my rule is if they were going to struggle debt-wise, the stress would now evident.

- blue chip industrial and financials - fully franked +10% divvies looking good. Two things to watch out for - 1. the earnings recession; and 2. can they pay the divvies out of accounting profit that will be whacked by one-off write-offs of intangibles. Long-term, looking sweet mate; short-term will still be volatile.

- gold & treasuries - what is you long-term outlook for USD, Euro and the Aussie.

so yep,  tweak those portfolio. Then again if you cannot stomach risk anymore (ie losing your dosh), stay in those term deposits. Just don't lock them in for too long as inflation looms and you will get spanked in real terms; so, like deciding for or against a vasectomy, you might want the option of being able to change your mind again in the future due to a change in circumstance.

Summary - cash - A man or woman can only bear what he or she can bear. At least with cash you don't have to subscribe to the Eureka Report

My 2c again....