Have been using some new "retiree" time to learn more about investing. Dan Wiener's "Investment Adviser" newletters have been most helpful.
So, the answer to the OP is that the market will fluctuate. But I have also been trying to improve AA with the rising market. Last Sept. sold my 2010 and 2015 target date funds and replaced them with Wellington and Wellesley Income (each taking up about 15% of my rolled-over 401K). Then, in recent weeks, have been selling off Star Conservative and Moderate Growth, locking in earnings from the past 10-12 years I've held them. Am hoping to buy more Wellington and Wellesley if/when the market drops, maybe using some dollar-cost-averaging to buy them at lower prices.
Would also like to put about 50% of this rollover IRA into Wiener's Income Portfolio (comprised entirely of Vanguard funds). In his newletter, he lists the earnings of each of his portfolios, going back about 20 years.
With today's market high, I sold off the rest of Star Conservative (finished off Moderate Growth last week). Hopefully, with cash "ready to go", I'll be able to shop for some bargains in the year ahead (if the the economy suffers due to the federal sequester).
We'll see how I do with this learning curve.
(These have been my "baby steps" beyond CD's, old 403B variable annuities, and mindlessly pouring contributions into the 401K money mkt. and target date funds with my last employer.)
(It helps that DH and I both have pensions, retiree HI, and he has SS. Plus, LBYM has been our MO forever.)