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Investing in bonds comes with two primary types of risk. The first is credit risk which represents the loss of capital if the issuing company or entity defaults on paying interest due on the bond. The second is interest rate risk which occurs when interest rates increase.
When you pull out of the market, often due to fear, you miss the gains when the market rebounds.
International stock is selling at bargain prices, provides broader opportunities and reduces risk through greater diversification but it is also more volatile.
In most situations, your portfolio should be divided into three buckets - cash, fixed income, and stock. Stock includes individual stock, stock mutual funds and stock ETFs.
A significant drop in the market also provides the opportunity to gradually buy stock at a tremendous discount.
When you buy gold, you are betting on the value that someone will pay for it in the future.