It's going to be a while before there will be a sustainable turnaround. The housing market will need to stabilize and inflationary pressures are still a burden. As an alternative, CD's and MMF's are obviously a safe bet, but you're not going to get 5%. Moneymarkets are paying around 2%, and you'll be lucky to get 4% on a 1-Yr CD. Moving to cash and trying to time the market can be very difficult, and as many here have mentioned, 401k's are long-term investments and most of us here are relatively young and have the time to wait it out.
For those of you that are interested in doing your own research and spending some time on your accounts, your company may offer a more "self-directed" retirement account. This will allow you to invest in stocks, etf's, etc. instead of the limited mutual fund choices that you normally have in a 401k. This opens the door to invest in short funds, which have an inverse correlation with the corresponding index (goes up when the market goes down!).