Not a recommendation but my situation may have some similar considerations as yours.

I took the risk and rebalanced (short term intent) my 401k - shifted some bond funds to equity index funds. Hoping to catch a good 20% short term bump w/ a market recovery upon which I'll rebalance again.

Couple of points that should apply at all times, but especially now:

You should have a sufficient degree of liquidity (ie cash) to carry you thru any disruptions relating to employment, etc.

Your investment portfolio should be structured to reflect your age. As we approach retirement, we need to consider that our ability to save will soon be reduced as our employment ends. Though a portfolio can recover losses over time, your ability to accelerate that recovery with contributions is limited in comparison to a 35-yr-old. Thus, your risk tolerance should be different. At the age of 78, my father watched his 401(k) drop by ~50% in 2008, as he had too aggressively used a Growth-type model for his portfolio. It’s hard to recover from that loss (despite the partial market rebound in ‘09) when you’re no longer contributing but are instead withdrawing.

Don’t try to time the market swings.

Don’t chase after alternate investments. Recently the usual relationships relating to Treasuries vs equities has been atypical - ie both prices have been declining on certain days. Inflation fears have been depressing bond prices enough to offset any equity investors trying to flee to Treasuries for safety. Gold has not been consistently rising right now either.

The equity market was far overheated before this scare began. The virus has merely popped a bubble that would have eventually burst. As to the eventual timing & severity of such a correction, I have no clue. But any advisor (and there are plenty) that was trying to argue that the recent gains was sustainable is as naive as those that argued that the real estate appreciation was sustainable in 2006. In recent years, too many corporations have been overly aggressive with stock repurchases and increased debt financing and they lack the financial condition to weather a sustained bad storm. Take a look at Home Depot’s balance sheet as an example.

As noted, it’s not wise to try to time this stuff. But, hopefully, you were appropriately positioned for your age before this started. And I hope the same for myself!

quote:

Originally posted by old rugged cross:
I am not saying others are wrong. This is just what I would feel comfortable doing.

Good luck and stay safe.

And that is the most important thing - whatever you do, make sure you feel comfortable doing it.

Everyone should have some cash on hand. If you don’t, get some. If you are retiring in two years you may need some cash or cash equivalent to live on. If you already have other cash lined up or you have plenty of pension or rent income or whatever, now might be a great time to invest (tomorrow may be even better though, hence dollar cost averaging is a good idea). If you have cash on hand for emergencies/comfort level, but will need more cash when you retire, it may make sense to continue saving 20% for retirement, but save it in something more stable than equities. As sasquatch28 said, your situation needs to be considered.