Julia’s investments survived the Great Recession–related bear stock market declines because she was well diversified and was investing more heavily in bonds in the years preceding the decline. When it seemed like the coming recession was starting to look like a reality, Julia cashed out of some equities and moved most of that money into corporate bonds and Treasuries. As a result, over the past four years, the bond portion of her portfolio rose over 20 percent due to low inflation and declining interest rates, which pushed up the value of her bonds. Now she thinks inflation and bond prices will rise so she is selling all her bonds and investing the proceeds into equities. But the stock market prices seem too high already, so she is hesitating. Offer your opinions about her thinking.