This is actually not a bad idea for those that dont have time to sit in front of computer screens watching the market all day.
For those that have a life else where and are looking for more passive types of investment opportunities, leaving money in short term deposits (not too long otherwise one risks missing out on opportunities) still pays a reasonable return.
Australia is not the US or Europe where interest rates are effectively zero, at least in australia one does have an option of doing nothing and still being compensated for doing nothing.
With the share markets in a secular bear phase, even those buying at the bottom of the range, cannot just buy and hold, otherwise they run the risk of buying now at 'good' prices, seeing some nice capital appreciation, only to see that capital appreciation disapear on the next down turn.
My estimate is that the secular bear phase will still continue for several more years. The secular bear marekt wont end in my opinion until both
(a) global interest rates are returned to a 'normal rate'
(b) global debt levels are reduced to a more historical normal range.