How much time till you retire? That seems to be the key to figuring out how to allocate your 401k money. IF you have a good many years to go, equities are good. If you'll retire tomorrow, well then you need to look at the total composition of your portfolio and figure out how you'll generate income from all those assets.
I have about 9 years worth of cash in income. If the market tanks bad, I am ready to commit to UTX and the funds. Worst case scenario- after I commit the cash (about 10% down from here), it keeps going down. I will keep putting in until no cash. I remember before Obama became president. I remember we had Bob Hope and Johnny Cash. Now we have Obama and no Hope and no Cash.