Balanced Funds Can Smooth Stock Swings
"Equities still have more upside potential than bonds for long-term investors, but the problems in Europe have raised the risks," says manager Kurt Spieler.
For his stock holdings, Spieler looks for growth stocks selling at reasonable prices. When concerns about the oil spill in the Gulf of Mexico punished energy stocks, he began buying oil and gas producers, including Apache (APA) and Occidental Petroleum (OXY). After sinking for much of the past year, gas prices are starting to rise, says Spieler. That should boost earnings for gas producers.
Cautious investors may prefer the Hussman Strategic Total Return Fund (HSTRX), which has returned 8% annually during the past five years, outdoing 99% of its competitors in the conservative allocation category. Manager John Hussman can put up to 30% of assets in equities, but lately he's been keeping his fund at 5%. Hussman worries that excessive debt could smoother the economic recovery. He expects a new wave of mortgage defaults to soon hit.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV