Just curious, are most of the responders on this particular thread already retired? Asking because I am still w**king and still have more than 7 years to go. What would you have done if you were working in current environment. Just wanted to get a perspective from those that are still w*rking.
If I was working and I believed my job and paycheck were secure for years to come, I would continue to invest in equities via no-load mutual funds. And, of course, put some cash into risk free savings just in case things get a lot, lot, lot, lot worse.
I did that in the 70's and 80's. I was working for an oil company that just got the go ahead to build a pipeline in Alaska. Money was not an object. We got nice raises that sort of kept us even with inflation, and jobs were secure unless one was dishonest or very incompetent.
Today, as a retired guy, I am more conservative. I am not bailing on equities, but I am also not buying more, though that might be very tempting if we see another 10+% drop. In regards to bonds, I am not locking in money for more than 2 years as I think interest rates and inflation are still riding the roller coast up with considerable momentum.
I recall that about two years ago, I was thinking if I saw another 3% 5 year CD I would jump on it. Not today. Inflation is too high. Rates still have a ways to go on the upside unless inflation takes a real dive. I might be tempted by 5+% for 5 years, but only for a small chunk of bond money.
I could be completely wrong. That's why I have bond ladders under two years. Evaluate and adjust as needed. YMMV.