Move Back Out of Cash?

Q: I just turned 60. Over the last 6 months, I have pulled about 25% of my portfolio into cash mutual funds paying just over 5% interest. Most of this was done as these stocks hit highs or near highs. I had several stocks that had gotten way out of proportion with good growth and wanted to see some cash cushion.

This is the time of year when it is usually better to be in the market than out so I am thinking of moving about half of the cash back into the market. As I understand it, the conventional wisdom would be to move in bond funds but I can not get excited about doing that. Do you have thoughts about whether I should move back out of cash and if so into what areas?

A: Yes I do have some thoughts. In fact my weekly article Changing Investment Landscape touched on this very subject (bonds). It's hard to say, not knowing much about your situation, but I do feel that there are some attractive opportunities in the market and that big down days like today may be something to take advantage of.

Your posted comments on this and other questions are welcome.
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