RAE
Thinks s/he gets paid by the post
What's your allocation to equity now?
It's quite low (less than 30%). But, my situation is probably different than many others, in that my basic expenses are covered by a COLA'd pension. I also have a 401k that is invested mostly in a stable value fund, and that provides some additional monthly income.
If that was not the case, I'd likely have to bump up my exposure to equities, although I would be nervous doing so. No one knows how this $4 trillion-dollar Fed QE "experiment" is going to end, because nothing like this has ever been done before. That means looking at the history of market returns for guidance as to what may happen in the near-term future is not particularly useful right now, at least in my view.