I realize I am a little late to the thread, and it is possible you have already made your trades, but indulge me, if you will.
You said;
Have had thoughts about cashing in the funds...Take the tax hit but perhaps a little peace of mind from trying to understand the market fluctuations over the last month.
May I assume by "Funds" you meant Mutual Funds? If this is the case, you may very likely be able to switch to a low or zero risk Mutual Fund
within the same fund family and not realize any tax liability. I suggest you talk to your broker of record or the fund family directly and ask this question.
Of course, the risk of being taxed on a capital gain applies only if the account in question is a non-tax qualified account. In other words, not an IRA or similar. If it is inside an IRA or 401(k) or a 457 plan then there would be no tax consequences unless you did a surrender and took possession of the cash. You can sell all day long and build up a cash position and suffer no tax liability whatsoever, as long as you leave it inside the qualified account.
Regardless of what you do, it is important that you are able to sleep at night! No amount of advice given on an anonymous internet forum can completely dispel your concerns. You have to be able to feel comfortable.
Having said that, what you are asking is a question that basically relates to attempting to "time the market".
There is an old expression;
"Tim
ING the market is not nearly as effective as time
IN the market"
Be prudent, thoughtful, don't trade out of fear or impulse and....
May all your trades be net gains.,
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