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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CnOWrms1

Dismayed, they say fiascos happen in threes. Housing has suffered from Floods, Fannie/Freddie, Foreclosures, and I'm adding what you said Financial meltdown. So, everyone, what else that starts with an F can happen to housing?

September 06 2010 at 6:49 PM Report abuse +2 rate up rate down Reply
desking9

We are doomed to repeat history. The American education system has dumbed down everyone in the last 40 years. Now, we have charter schools who select specific children to attend classes. These children might have a chance. And everyone else not selected is left to rot in the mis-managed, financially strapped public school system. And what do we have, a large portion of our country who can't read, write or speak properly, let alone know how to manage finances or a budget. When they become 18, someone puts a credit card in their hands and says go at it.

September 06 2010 at 4:08 PM Report abuse +3 rate up rate down Reply
dajt666

the best defense in a volital market is to not get involved at all. wall street neesds more deregulation. everytime republicans deregulate banks and the markets history shows we have a financial collapse. remember the keating 5 in the 80's?

September 06 2010 at 12:00 PM Report abuse rate up rate down Reply
1 reply to dajt666's comment
Dismayed

Clinton and Greenspan started the deregulation of the banks allowing them to trade derivatives, credit default swaps etc. He also began the process of encouraging giving mortgages to those who couldn't afford them. This process, through Fannie and Freddie, continued under Barney he-should-be-in-jail Frank and democratic congresses in the Bush administration. Obama encouraged his consituents as an activist and lawyer for Acorn to get mortgages they couln't afford. Next stop, the mortgage and financial meltdowns.

September 06 2010 at 12:21 PM Report abuse +5 rate up rate down Reply
dterraman

always follow the money trsil.....it leads to the steps of the root of all evil.....the parasites at the central bank

September 06 2010 at 5:52 AM Report abuse +2 rate up rate down Reply
1 reply to dterraman's comment
tjprice48

you are so right......it goes deeper than most people know. these parasites control money and when you control the flow of money, you control business, countries, food, etc.

September 06 2010 at 5:32 PM Report abuse rate up rate down Reply
footsiedown

Rasmussen Reports: 24% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as president. Forty-seven percent (47%) Strongly Disapprove. The numbers show a high degree of stability. lol. Overall, 42% of voters say they at least somewhat approve of the president's performance. This matches the lowest approval rating yet measured for President Obama. Fifty-seven percent (57%) now disapprove. rotflmao Some of the president's most enthusiastic supporters, such as young adults, are less likely to turn out to vote. In a book released earlier this year, Scott observed that, "The gap between Americans who want to govern themselves and politicians who want to rule over them may be as big today as the gap between the colonies and England during the 18th century." In Search of Self-Governance is available at Rasmussen Reports and Amazon.com. Gallup Daily: Obama Job Approval: 45% approve, 48% disapprove FIRE OBAMA!!!!!!!!!!!

September 06 2010 at 1:50 AM Report abuse +2 rate up rate down Reply
1 reply to footsiedown's comment
Robert & Lisa

Jimmy Carter's failed Presidency must be Obama's goal. I predict that due to Obama's failed policies, we'll have huge inflation within 5 years and more than 10% unemployment for years to come. Bigger government means a lower standard of living for the average Joe. Does anyone know why?

September 06 2010 at 6:57 PM Report abuse +1 rate up rate down Reply
footsiedown

Obama's policies are destroying jobs. The Stimulus failed. The Gulf. Idle rigs. Obama shut down drilling for no reason. The American people do not want liberal achievements. George what more could the president have done Stephanopoulos said, "There are more signs today the US economy is slowing down, jobless claims up to 484,000." Obama wants us to think that almost 10% unemployment is normal, and it would be worse if not for Obama. It's not a question of what more could he have done. It's can we turn what he's done around and save the country? When your number one issue is healthcare, create unemployment. It's about control.

September 06 2010 at 1:48 AM Report abuse rate up rate down Reply
footsiedown

In all honesty, it seems that, if not for the capitalists and conservatives on Wall Street, this nation would be sunk even deeper. Remember in November.

September 06 2010 at 1:47 AM Report abuse +1 rate up rate down Reply
1 reply to footsiedown's comment
barryaclarke

"Go green... Recycle Congress in 2010"

September 06 2010 at 12:19 PM Report abuse rate up rate down Reply
footsiedown

Mort Th'Zuckerman, the Wall Street Journal, entitled: "The End of American Optimism". opener: "Our brief national encounter with optimism is now well and truly over. We have had the greatest fiscal and monetary stimulus in modern times. We have had a whole series of programs to pay people to buy cars, purchase homes, pay off their mortgages, weatherize their homes, and install solar paneling on their roofs. Yet the recovery remains feeble and the aftershocks of the post-bubble credit collapse are ongoing." All to stimulate the economy. None of it worked. It remains feeble. "We are at least 2.5 million jobs short of getting back to the unemployment rate of under 8% promised by the Obama administration. Concern grows that we are looking at a double-dip recession and hovering on the brink of a destructive deflation. Things are bad enough for Federal Reserve Chairman Ben Bernanke to have characterized the economic outlook late last month as 'unusually uncertain.' " Has this kind of stimulus worked in the past? "We are in what a number of economists are referring to as the 'new normal.' This is a much slower-growing economy that, recent surveys have revealed, is causing many Americans to distance themselves from the long-held assumption that their children will have it better than they." The new normal is designed to save Obama and the Democrats from any association with this economic collapse. The new normal is an excuse, giving the bumbling Obama adm a pass, and it's just coincidental that it happened when Obama took office. The new normal for democrats is a $7 million yacht with no state taxes for John F. Kerry, is a new beachfront mansion and a host of private planes for Algore, is a super wedding for Chelsea Clinton, is 30 luxury rooms at a five-star European resort for Meeshell. For conservatives, the new normal is to tighten our belts, to accept excrement sandwiches, is no expectations, and is a creation to get you to go ahead and accept mediocrity in your country. Harry Reid famously said, "This war is lost," when our brave soldiers were fighting on the battlefields of Iraq. The Democrat Party does not believe we should secure our border, or stand up for this country. Dems stand with an imam who refuses to denounce Hamas. The Democrat Party is not about what America is about. The new normal is a bunch of -- America's wrong, blame-America-first -- whiney dems.

September 06 2010 at 1:44 AM Report abuse +2 rate up rate down Reply
2 replies to footsiedown's comment
jrusz55

YOU ARE RIGHT ON MY BROTHER AND THANK YOU !!!!!!!!!!!!

September 06 2010 at 9:14 AM Report abuse rate up rate down Reply
Dismayed

Yes, throw the bums out. Keep your eyes on the prize.

September 06 2010 at 12:27 PM Report abuse rate up rate down Reply
Fred

First, all you "liberals" out there have no clue. Second, read your history, most of this stuff has been going since FDR. The "conservatives" get in office, try to minimize some damage, which so far cannot be done. You folks get real, this country IS going down if you don't get the present administration OUT.

September 06 2010 at 1:09 AM Report abuse +2 rate up rate down Reply
FRANK

this is a damned if u do and damnsd if u don't market

September 05 2010 at 8:05 PM Report abuse rate up rate down Reply