Ask the Expert: Super investment? What to bear in mind before ‘timing the market’

‘Market timing’ relies on getting two delicate decisions correct. Photo: Getty

• Question 1: With predictions that superannuation is most likely to produce negative returns this year, would it not be prudent to convert most of the fund to cash within the fund to ride out the downturn in share market and then convert back to, say, a balanced fund in the future? 

Many people attempt this strategy, it’s called ‘market timing’. It normally ends badly.