However, you still need enough presence in stocks to counteract inflation.
This phenomenon is referred to as a flattening of the yield curve, which generally creates an environment where longer-term bonds are less attractive than they otherwise might be. The ratio you choose depends on how conservative or aggressive you are as an investor. However, you still need enough presence in stocks to counteract inflation. The higher the stock component, the more aggressive your portfolio will be.
An inverted yield curve and other trends in the economy and stock market are signaling a recession sometime in 2007, according to Hugh Moore. Quotes supplied by ComStock, an Interactive Data company. Investors in retirement may want to consider an even higher ratio of bonds, since your primary goal will be preservation of capital. Americans' borrowing levels are at historic highs, but there's no cause for alarm quite yet.