Sorry tbaylx, I'm with Jack on this one.
You have to see it in the context of the Emirates Provident Fund. It costs us nothing to shift from equities to cash/bonds and VV. I think we get a certain number of free shifts per year.
It also doesn't go about predicting the top of the market. I lost over 40% of my provident fund in the 2008 crash, simply because I wasn't paying attention to the signs.....I was too busy drinking Coronas on the beach.
I am no market analyst but I have come across several informed opinions that believe that the market is entering a high risk phase. It may well continue in an up trend, but there is more downside risk than upside. Accordingly, I have shifted my portfolio to a lower risk equity group and bonds/cash mix. This is simply prudent. I may miss out on some nice market action but that is a risk that I am prepared to take in the interest of protecting my funds over the longer term.
You may be correct about about diversifying across markets and low cost ETF's but these are not options in our Provident Fund. You simply choose from a list of about 20 equity funds, cash funds or bond funds. It simply makes sense to be more conservative when there is risk.
Last edited by Kennytheking; 1st Feb 2013 at 10:04.
Reason: Grammar