That does little to quell the nerves of investors, who appear to be rushing for the exits. Pursche says this overreaction is wrong, and smart investors should consider buying. "If you're a long-term investor, you maintain your current stance. That is, you stick with the stronger names and investment vehicles that should do well over the next three to five years," Pursche says. "If you're generally comfortable with the stocks and securities that you own, I certainly wouldn't sell. I don't know that I'd rush to buy in, either. It takes a pretty strong risk appetite." Breaking it down, Pursche says investors with a 20% cash position should stand pat, while an investor with half his portfolio in cash could add stronger companies. In the case of Pursche and the GMG Defensive Beta Fund, those are high-quality, dividend-paying stocks with strong balance sheets. Pursche says he's looking at French oil company Total SA ( TOT). While Pursche likes the energy sector, Total is a well-run company in Pursche's view. A 7.5% dividend yield doesn't hurt either. "That to me is a company, if you like the energy sector, that is a great way to go," he says. Pursche says beaten-down consumer-goods maker Unilever Plc ( UL) is a "terrific" company, with a yield over 4%. In technology, Intel ( INTC) has an attractive 4% yield, Pursche says. Meanwhile, he's avoiding financials. Through Friday, the financial sector was the worst performer of the S&P 500 index, down 20% for the year. However, one financial stock Pursche does own is JPMorgan Chase ( JPM), which he argues looks attractive on a long-term basis at a price below $30. Still, the bank's lending may get squeezed as the Fed seeks to lower yields on the back end of Treasuries. -- Written by Robert Holmes in Boston. >To contact the writer of this article, click here: Robert Holmes. >To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet. >To submit a news tip, send an email to: email@example.com.