I need to rebalance my portfolio, is now a good time to weight towards fixed interest?

Q.

I'm 67 and have a part age pension which provides about one-quarter of my income with the rest from allocated pensions. My fund allocation has been quite aggressive with a good deal in shares and property securities so they have done poorly of late. I have been drawing on cash funds while waiting for the share market to recover but these are nearly exhausted and I need to rebalance my portfolio. The only funds doing well at the moment seem to be fixed interest so I am thinking of weighting more to fixed interest as I rebalance. Is that a good idea at the moment or have I "missed the boat" due to the rising value of bonds as interest rates have fallen?

A certain recipe for poor performance is to invest in last year's best performing asset class. Yes, fixed interest has done extremely well because rates have been going down, but will give poor returns when the interest rate cycle inevitably turns up. Talk to your advisor about agreeing on an asset allocation that suits your risk profile and stick with it.