hedging risk

Hey, Wall Street? Chicken Little called. She says you need to stop overreacting to JPMorgan Chase's $2 billion trading loss. I mean, it's not as if the sky were falling. For a bank this big, $2 billion? It's practically rounding error.

Stocks are underperforming so far in 2010, and Treasury bond yields are low, too. So how can you get good returns without excessive volatility? Standard & Poor's Equity Research suggests mixed-asset mutual funds, which capture the strengths of both stocks and bonds.