Financial planners have urged their clients to hold more cash after the S&P/ASX 200's slump continued after its worst financial year since 1982.
Citi Smith Barney financial planner Chris Murray said his clients had become more conservative and has suggested clients set cash aside to buy into the market when it turned.
Bailey Roberts Financial Planning investment analyst Leith Thomas advised his firm's planners and clients to hold cash as he still did not see good buys in the market.
"[We are] not seeing a great deal of value at the moment," Thomas said.
He had advised his firm's planners and clients to wait for a correction in coal and oil stocks before buying into them.
Griffin Financial Services managing director Ray Griffin said his existing clients held 10 per cent to 20 per cent in cash, compared with 5 per cent to 10 per cent when the market was performing well.
"Over the next six months we think there is more bad news to emerge out of the United States both from a financial markets point of view and also the economy generally," Griffin said.
Thomas and Griffin said they liked the Big Four banks but would only buy more of their shares if upcoming earnings remained healthy.
The S&P/ASX 200 dived 1.9 per cent to 4,998 yesterday, its lowest level since September, 2006.
The benchmark experienced heavy selling after the US Dow Jones Industrial Average index entered bear market territory on July 2.
Mining giant BHP Billiton sank 7.2 per cent to $39.82 and its rival Rio Tinto depleted 7.8 per cent to $121.95.
Commonwealth Bank of Australia jumped nearly 3 per cent to $41.35 after the lender reiterated its balance sheet was the strongest of its Big Four bank rivals.
