The average SMSF has 98% of assets in domestic investments in Australian dollars. In my opinion, this is not the optimal asset allocation for today, or the next 20 years.
I believe the pullback in global equity markets is giving SMSFs a chance to deploy Australian dollar cash holdings to world-leading global companies.
The last few weeks have been a lesson to Australian investors about the lack of diversification. If you only hold Australian banks and Australian resource stocks in Australian dollars, you’ve had a torrid time.