Equity investors have ample reason to be frustrated these days. The S&P 500 ($INX) has been pretty much stuck in the vicinity of 1,080 since mid-May -- and yet it has stayed there with almost maddening volatility.

But if you're a long-term bull on stocks, there are ways to smooth out the bumps of short-term volatility. Oliver Pursche, president of Gary Goldberg Financial Services and co-portfolio manager of the GMG Defensive Beta Fund (MPDAX), says the key is to buy stocks that have great international growth, strong cash balances and pay a dividend yield that's greater than the yield on the benchmark 10-Year Treasury note.

"[Buying those stocks,] coupled with some bonds and some agriculture and other commodities is the best way to lower volatility," Pursche says. For more on how GMG Defensive Fund Beta seeks to contain short-term volatility, see this video.

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