Growing a set of balls...

I need to.  Not literally, thankfully.  Those jewels worked just fine enough to produce the three rugrats that grace my home every evening that I return from work.  No, I'm talking financial balls and how to manage my 401(k).  I know a ton of people, the vast vast majority, have been taking a beating over the past many months to year and change now.  I, however, when setting up my portfolio upon joining my compnay four and a half years ago, went ultra-conservative.  I'm 100% in bonds right now, and while the return sucks pretty hard, it totally insulated me from the raping the market has been taking.

Now that the bailout bill has passed, I'm starting to wonder if it might be the right time to diversify a portion, probably even a majority, into more risky funds that would over time yield a better return.  I'm only 36, with a long work career ahead of me, so risk is really minimal over that long of a period of time (at least that's what I think, no?).  The question is - how do I know the market really is scrapping bottom and now is the time to move.  All the funds over the past 3 month and year trends have lost money.  But will they likely be upturning over the next similiar periods.

This is when that all-seeing, all-knowing crystal ball would come in so handy.