Many investors are struggling to find companies that can prosper with the long-term "buy and hold" strategy, due largely due to technology-related industry disruption. Consumer staples stocks like drugstores, food producers, and pharmaceutical manufacturers were once considered the ultimate long-term investments. Between earnings per share growth and reinvested dividends, you could count on below-average volatility and perhaps high single digit long-term average annual returns. However, many of these sure-thing companies now face headwinds that call into question their long-term prospects. Examples of companies that no longer command the confidence of investors would be Kraft Heinz (KHC), Merck (MRK), Verizon, (VZ), and Walgreens (NASDAQ:WBA).
That said, it appears that the banking sector, and more specifically commercial banking, may very well be able to withstand the changing economy. Shares of Goldman Sachs (GS) epitomize the long-term track records that investors should seek in a "buy and hold" candidate. After an overheated upward move following the 2016 presidential election, GS shares have cooled off, moving sideways for over a year. In the low 250's, they appear to be especially well priced for investors looking for low maintenance stocks to depend on in a world of rising interest rates and increased market volatility.
