Is this a good time to invest in a bond mutual fund? Is it ok to invest money in bond mutuals in this market?

I have some stock mutual funds, and some money in a money market fund. I am invested 50% mutual funds 50% money market funds. My Question is, is this a good time to invest about 40% of my money market funds into a bond mutual fund factoring in the overall status of the stock market at this time?
If so, what percentage should be allocated to short term bonds, intermediate term bonds, and long term bonds. Thank you for your help. [-: curlycuejoyce ;-]

It is never a good time to invest in a bond fund.

Just buy individual bonds/CDs of varying maturities. You won't have to give up part of the yield to management fees and your principal is guaranteed (or at least fairly secure) if you hold to maturity.

If you feel you cannot predict interest rates - you have plenty of company, most "professionals" can't either. Simply do a ladder: a series of bonds maturing every 6 months and every year.

Don't be offended. But you are off track. Bonds will do nothing for you. Now, before, or in the future. Stock mutual funds are the true vehicle for investment success. If you have cash now you are in the most marvelous position. What a great buying opportunity we now have. Don't procrastinate or the sale will be over. Please read my profile and put me on your side.

The best way to describe bond funds is this:
1) As interest rates increase the value of the bond fund will decrease
2) As interest rates go down, the value of the bond fund will increase.

Which way do you think interest rates are heading?. Your answer will tell you what to do.

You can always try a balanced fund. A balanced fund has a mixture of bonds and stocks.

NO! Dear 'ol George is gonna screw it all up in a month or so

The answer I have for you is it is always a good time to invest in Bonds.

You should be investing in a Balanced Portfolio of both Stocks and Bonds - The bonds are for Reducing portfolo risk and Security. I believe you do not give up anything and Should be in both Fixed(MM Bonds...etc) and Equities at least 20% the balance is a function of your age.

Conservative is age in bonds.
Average is age -10 in bonds
Agressive is age -20 in bonds -- I am 64 and pretty conservative so mine is 40/60 Bonds and Equities.

I have 30% in Vanguard Short term Bond Fund
30% in Vanguards Total Bond Market Fund
30% in Vanguards TIPS Fund (Inflation protected Bonds similar to I Bonds)
10% Money Market Fund

Remember this Investing is a very personal thing - you can lose 50% of your money in agressive stock, in a harsh Bear Market. like 1987 maybe.. Not sure of date. The real question is can you stay the course with you allocation and sleep at night. The Sleep test is the best test.

Most people lose money not because they have a bad plan because they change plans all the time. They dont stick with their plan.

Costs Count
Have a Plan
Invest in Low Cost Passively Managed Mutual Funds
Offset Risk with Bonds

Thats my plan! Agree or disagree thats my plan.

Good Luck Gerry