Is this the smart asset allocation?

There has been a significant shift from cash to stocks over the last year. This seems natural given the increase in economic growth. The recession ended a year ago. Cash flows can drive the market higher, but this is also a chase for returns when cash rates are so low. However, the flow to bonds as a cash substitute is over. The benefit of QE2 does not seem to exist since its announcement and there is a change in bond flows. Inflation fears have increased, so the chase is on for equities and for real assets. However, is return chasing good thinking at this time?