If your investing time horizon is 5 to 10 years or more, consider having at least a portion of your investment dollars in equities (stocks). Historically, stocks have produced returns that outpace inflation and outperform fixed income securities such as bonds.
If you have a shorter time horizon, you may want to address market volatility by holding cash in reserves to pay for current expenses, instead of selling stocks that may have declined. That can give your equity investments time to potentially recover their value.
Past performance does not guarantee future returns.