I don't think that I'm the right person to be giving advice but I would have to guess that each situation is different.
One of my neighbors/friends was just telling me that if rates drop to 4.5% to buy more real estate. She also told me not to time the market and to just buy what I think will do well.
I don't have the assets that she does, so I have to be more careful. She can buy a new business, home, etc. on a whim.
I'm being overly cautious right now, but I only feel comfortable with money markets and investing money back into my business right now. I have been terrible at investing in the past. I'm embarrassed to think about how much money I have lost in the stock market time and time again, starting with the tech/internet stocks crashing and now the the current economy. My home has already dropped over $300k in value in less than 2 years.
2009 looks like it is going to be tougher than 2008. I don't think that we have seen the worst yet. But that is just a guess based on analyst predictions of higher rates of unemployment and even higher rates of foreclosures next year.