Hiker, I think it really depends on how bonds do during subsequent bears. The allocation considerations are primarily between stocks and bonds with cash as a safe haven.
I really don't mind a fund holding lots of cash during a bear market - capital preservation provides enormous compounding benefits over the long haul. Also note that the NDR tape model would probably give some exposure to stocks during bear market rallies. For example, they're currently overweight in stocks, although Ned thinks we're in a secular bear. In other words, I wouldn't have expected them to be 100% in cash from 3/00 to 10/9.
I wish NDR/Gabelli would provide some examples on how their model performed during out-of-sample periods and real time. Because their models are always being updated, don't know if that is even possible.