Superannuation in shares

[Aussiesteve]

Wondering how people with an aggressive risk profile would respond if they felt pretty sure that share market was about to go through a prolonged correction? Would you switch to a low risk profile and then switch back to aggressive once the drop has occurred?
Also interested in any opinion whether that correction is likely to occur ( was listening to Gotliebson the other day who said we haven't really had a major correction in 22 years - GFC aside - and that we were due for one sometime in next 3 years.

 

[luutzu]

Wondering how people with an aggressive risk profile would respond if they felt pretty sure that share market was about to go through a prolonged correction? Would you switch to a low risk profile and then switch back to aggressive once the drop has occurred?
Also interested in any opinion whether that correction is likely to occur ( was listening to Gotliebson the other day who said we haven't really had a major correction in 22 years - GFC aside - and that we were due for one sometime in next 3 years.

The dot.com bust of 2000-01 was pretty big and bad.

It's a good question, I don't know what the answer is. Well, answer is if I know it's going to crash I'd be out, but problem is I won't know.

I guess all we could do is see if what we're holding is too overvalue for our taste and make adjustments. If the price seems too ridiculous, get out into cash and pray for a correction; if it's just slightly ridiculous, could be an opportunity to just hang on and hope for the best.

But probably best to just behave and decide as you would under any market condition - know what you're doing, have your own reasons for why you're doing it. And if you're right you're right, if you're wrong don't tell the wife about it, haha...

Can't make all the money in the world; shouldn't worry about things you cannot predict nor control.

As Sun Tzu said, victory lies with the external, defeat lies within. So don't lose.