This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How to Beat, or At Least Stay Sane, in a Volatile Stock Market

NEW YORK ( TheStreet) --I wish more people would do what TheStreet founder Jim Cramer did the other night on his "Mad Money" television program: Cut Ben Bernanke and the Federal Reserve some slack.

As Cramer said, Bernanke can only do so much. Cramer appreciates the Fed's "measured approach" and I appreciate Cramer's calm approach to the market while others wax hysterical.

"As long as I can remember, the rain been coming down. Clouds of mystery pouring confusion on the ground," as Creedence Clearwater Revival sang. The sky was falling, big time, in 1975 when I was born. And it's been falling, almost non-stop, ever since. I can hardly count the number of times Bruce Springsteen has covered Credence over the years as a sign of protest, anger and frustration. It never ends. If you have been following the stock market for any length of time, you should recognize this.

To generate market-beating or, at the very least, consistent returns and, more important, stay sane during volatile times, you need a plan in place that puts you on the offensive. At the top the list for me is to maximize income.

Buy Dividend Growth Stocks

Something Cramer said hit the nail on the head: Because of the Fed's interest rate policy, for at least the next few years ... dividend stocks as the only game in town. That's where I keep about 70% of my money.

I don't go after yield as much as I go after companies that increase dividends and continue to grow even in a sluggish economy and uncertain world. That's why I hold so many big media companies.

Not only do they keep increasing their dividend payments, but they're pumping revenue consistently higher by licensing no longer advertising-friendly content to outlets like Netflix (NFLX) and (AMZN). Plus, they're lapping up revenue associated with the sports programming they own the rights to as well as pay cable television and movie production and distribution. It's a wonderful business to be in -- volatile stock market or not -- and it's only going to get bigger and better.

Track my article history for coverage of the media companies I own and like.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INTC $30.28 0.00%
P $9.93 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs