I have about 35% of 401K in bonds. It has been a great ride this year. However I feel that time to move out is coming. I have plans of moving half of that portion into US stocks, energy stocks, emerging market stock, REITs and TIPs. But I am not in hurry. Maybe I will catch one last bond rally due to QE2.

Currently this is what I feel.
Bonds – ridiculously expensive.
US stocks – fairly priced.
Emerging Mkt stocks – moderately expensive.
REITs – fairly priced.
TIPs – ???
precious metals – definitely expensive.
Oil (non Gas) – fairly priced.
Natural Gas – cheap.

What funds you buying? Any recommendations?

I have been keeping the duration of my bond portfolio to less than 5 years.