Anton Tagliaferro: Telstra was a great ride, but we're getting off. In large-cap stocks, among the best decisions we made was continuing to buy Telstra shares all the way down to $2.50 as the Future Fund sold its shares aggressively. We ended up with more than 7 per cent of our portfolio in Telstra at that price. Although at current prices of over $5 we have been taking profits. Overall we have been pretty cautious on the sharemarket for a while now, given quite high valuations and a continued mixed macroeconomic environment. We are very cautious of domestic cyclical stocks as we believe any economic recovery here in Australia is likely to be pretty insipid. (VIEW LINK)