Holding CASH is probably the best place for short term (less than 3 years). Although most moneymarkets etc, are paying less than 1%, there is NO risk of losing principle. You only risk losing out a bit on inflation, but you have piece of mind. I have long term (20 year) targets, and want income. Lots of money in REITS, Blue-Chip dividends, utilities, etc. . my average payout is about 6% on my portfolio. . .also lots of corporate bonds paying 6 - 9%. . .ladder them out in 10K strips from 5 - 15 years.
Answer to your question as always is: what are your investment goals. . .my Aunt kept all bonds till maturity, and kept most blue chips in her portfolio for 40 years. . .she died a RICH woman. A note on 20 year corporate bonds. . .if you can get 8% over 20 years, you will go through 3 - 4 interest rate cycles. (also recessions and recoveries) it generally averages out over 20 years, and you DO get your money back. . .