@Tampabay Ha, hammer to nail, that's probably it, plus (I would add) an almost resolute belief that 2008-2009 never ever happened. :)
But to stay true to JohnN's post, several months ago I started to feel uncomfortable and, in step with what older wily veterans have already posted here, I did some trimming and took some gains from my stock funds. Hardest step is the first one; several weeks later, I realized that that had felt pretty good and sold a few shares here and there in stocks that had become overvalued. This brought cash to around 10%. If the 10yr T goes on down to between 2.25% and 2%, I'll be giving a trim to some fixed income, bringing cash up to circa 12.5%. Combined with cash held in mutual funds (some are rather defensively elevated right now), total cash I figure will be about 15%.

@heezlsafe - no delusion here. That's just part of my overall approach to allow up to 50% DODIX in the most conservative portion. (On my spread-sheet it's labeled "AA" - signifying approximate credit quality). You are correct, however, that an intermediate term bond fund behaves quite differently than cash.
If you require cash only, it's about half the cited number or 12%. I hope you don't mind that the ultra-short term bond fund TRBUX is included in that. If we knock that out too - geez don't know --- probably less than 5% cash consisting of various money market funds and FDIC insured bank accounts.

Cash: 0.02%
Money Market Funds: 0.73%
Stocks: 74.34%
Fixed-Income: 13.59%
Mutual Funds: 11.32% (Equity Funds)

FYI: The S&P 500 fell 1.51% yesterday, but it followed up that big loss with a gain of 1.75% today. Over the two-day period, the S&P is up about 4 points.
Big down days followed by even bigger up days have been rare during the current bull market that began on March 9th, 2009. In fact, situations like the last two days where the S&P fell more than 1.5% only to rally back even more the next day have only occurred six other times, and we highlight them in the table below.
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2014/10/8/big-down-day-followed-by-even-bigger-up-day.html?printerFriendly=true

Experience has taught me I am not good at market timing. So, I mostly let fund managers do this for me. My major fund holdings with substantial cash positions include FPACX, FPIVX, ICMBX, ARIVX, YAFFX, WEMMX, COBYX, and BERIX. The fund analyzing tool I use tells me my portfolio currently has 18% allocated to cash/near cash, with most of that coming from these holdings. I also have 6 % of my portfolio set aside in funds including RPHYX and MWCRX for use if there is a MAJOR (maybe 35% or more) decline in the stock market. I would be comfortable selling those two holdings with some loss in that situation. So, all told, I have about 25% of my portfolio currently waiting for a better time to invest in more volatile stuff. I also have just over 50% currently invested in the stock market and the remaining 25% in bond funds including OSTIX and RSIVX. The bond funds presently mostly tend towards short term and high yield.

Huge quarter. Triple profits, year over year.
Strong aerospace growth. Strong auto demand.
Price run-up in basic materials.
Predict strong organic growth in 4Q.
Klaus Kleinfeld has to be one of best CEOs in America.
He's key chart driving strong performance...

Here's more...

at 32% healthcare holding, I too have the same morningstar message like @tampabay
"You have a lot of exposure to sectors marked by this icon. You should take special note of your large position in healthcare stocks. Healthcare issues generally offer good growth potential but come with a lot of risk." In my holding PRHSX , VHCOX, VTSAX, PRWCX,VCVLX, VPCCX each has more than 15% exposure to healthcare.

@Charles: FYI: AA
Regards,
Ted
http://www.marketwatch.com/story/alcoa-profit-sales-top-estimates-2014-10-08/print

Oh, good Lord (or whoever) have mercy! Here we go again, justifying investments in criminal banking enterprises, who continue to use accounting gimmickry (FASB rule 157) to hide a bunch of 2008 toxic debt they still hold, and who continue to be caught manipulating just about every market of any significance, after doing it for over a decade. Your investments in them support them in these endeavors; what kind of a world do you want?
Get out ALL the shovels 'cause it looks like, with Oakmark, we're gonna need 'em--- it's getting so deep. "Private equity perspective"---- oh, pulleeze!

A bit dated, but FWIW...
http://www.mutualfundobserver.com/2013/10/whitebox-tactical-opportunities-conference-call/
Will be interesting to reassess at the three year mark, which is couple months away...I believe they will rank just above "average" in the long/short category, which as Scott points out is pretty diverse.
Here's snapshot since its inception:

I remain heavy WBMIX and a fan of Whitebox. They has lived up to their word regarding openness of fund strategy, communication with shareholders, consistency in implementation, and elimination of loads. Its er is low for the category, but it could be lower.

Brother Joe.
My bad for not being more specific.
AA - Alcoa
Aluminum Company

lol. Market down a few %, Fed runs to the rescue. I thought they wouldn't run to the rescue unless the market declined a good 15-20% or more.

I believe that I read somewhere that AA is going to impose surcharges for both seats and seatbelts. Also, a "destination fee" for luggage, in addition to the existing luggage charges, but the destination fee will only apply if the luggage arrives at the correct destination. If the luggage is lost in transit, there will be a new "finder's fee" and "retrieval fee", to offset the associated expenses, but the destination fee will be waived.
That should improve earnings significantly!

I believe he meant Alcoa, but your thoughts on the other AA are amusing.

Hi JohnN,
As of my most recent Xray which includes liquid cash (about 15%) held within my portfolio plus the cash that my mutual fund managers are holding (about 5%) equals about 20%. I have recently spent some but I have also had some fund distributions that have also paid to the cash area. With this, I feel, 20% is still a good number.
Old_Skeet

Another example below...Artisan, one of strongest fund houses available today.
Consistently, this family has high percentage of GO funds.
As of last quarter, 4 of their 13 funds are GOs. Pretty good.
But more recent performance of most of their funds is average at best with 7 being in lower quintiles:
http://www.mutualfundobserver.com/fund-ratings/?symbol=ARTGX+ARTIX+ARTKX+APHEX+ARTHX+ARTRX+ARTJX+ARTSX+ARTWX+ARTMX+ARTQX+ARTVX+ARTLX&submit=Submit

sir think you are right. so my portfolio income - about 28% all bonds/bond funds... but 1% is active cash where I can buy stuff if wanted to ... :)

http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2014/10/08/4-reasons-why-cash-is-king
mine portfolio ~ 1% cash holdings, and ~71s% stocks ----28% bonds/income stuff
what's your favorite cash vehiecles - ? money market acct funds or ETFs or CDs??

So, some links below to current ratings on long term top-tier performers. All notable. All struggling this past year...or more.
http://www.mutualfundobserver.com/fund-ratings/?symbol=TCWAX+OAKIX+UMBWX+TIGAX+SHSAX+PRHSX+VCHSX+MHNAX+UNHIX+HABDX+PTTRX+AMANX+YAFFX+BBTEX+FEVAX+FMIHX+GABEX+MPGFX+MVPFX+PIXAX+&submit=Submit
http://www.mutualfundobserver.com/fund-ratings/?symbol=CVGRX+FTQGX+MFCFX+SEQUX+PRGFX+WTEAX+AMRMX+ARDEX+AUXFX+FAIRX+BAEIX+FMIEX+IEF+PMHIX+VBLTX+ADAIX+BCMSX+ACRNX+MERDX+NBGNX+&submit=Submit
http://www.mutualfundobserver.com/fund-ratings/?symbol=RYSEX+ARTQX+DEFIX+FPPTX+PHO+FOBAX+MACSX+PVFAX+RYSEX+PRSVX+WEMMX+VVPSX+CCASX+WAAEX+WSCVX+WSTCX+UNSCX+WGRNX&submit=Submit
Broad category set.
This board especially should recognize a lot of familiar names:
Oakmark International I (OAKIX)
Waddell & Reed High-Income A (UNHIX)
PIMCO Total Return Instl (PTTRX)
AMG Yacktman Focused Service (YAFFX)
BbH Core Select N (BBTEX)
FMI Large Cap (FMIHX)
Mairs & Power Growth Inv (MPGFX)
PIMCO Fundamental IndexPLUS AR A (PIXAX)
The Cook & Bynum Fund (COBYX)
Sequoia (SEQUX)
T. Rowe Price Growth Stock (PRGFX)
American Funds American Mutual A (AMRMX)
ASTON/River Road Dividend All Cap Val N (ARDEX)
Auxier Focus Inv (AUXFX)
Fairholme (FAIRX)
iShares 7-10 Year Treasury Bond (IEF)
AQR Diversified Arbitrage I (ADAIX)
Meridian Growth Legacy (MERDX)
Neuberger Berman Genesis Inv (NBGNX)
Royce Premier Invmt (RYPRX)
Artisan Mid Cap Value Investor (ARTQX)
Delafield Fund (DEFIX)
FpA Capital (FPPTX)
Tributary Balanced Instl (FOBAX)
Matthews Asian Growth & Inc Investor (MACSX)
Royce Special Equity Invmt (RYSEX)
T. Rowe Price Small-Cap Value (PRSVX)
TETON Westwood Mighty Mites AAA (WEMMX)
Vulcan Value Partners Small Cap (VVPSX)
Wasatch Small Cap Growth (WAAEX)
Walthausen Small Cap Value (WSCVX)
Ivy Science & Technology C (WSTCX)
Wintergreen Investor (WGRNX)
SEQUX, arguably greatest mutual fund ever...no longer a Great Owl.
FAIRX, what a difference a decade makes...although, still top quintile across last two full cycles (through September anyway).
Perhaps somehow related to bond yield? IEF or TLH?
Valuations? Defensive funds not buying into current bull market?
Or, just the normal ebb and flow of investing styles across cycles?

From Barron's blog, a nice summary of YTD action in bonds - remember the talking heads predicting 'nowhere to go but up' when the 10y hit 3%?
Like expatsp said, choice of bonds depends hugely on what else is in the portfolio, and the last few days are a reminder of why IG bonds work well in a portfolio with significant equity.
It's also 'educational' to see what HY is doing vs. equity lately - despite the fear of non-IG bonds (also expressed in the Barron's blog time after time), they're behaving as advertised: running in the same direction as equity, but with less upside/downside.

should be good for 5-10 years. after that too well known to be investible (all will know about ageing baby boomers?