The volatile, sideways market continues to plague investors. One day it looks like the bulls are in full stampede mode, and the next it seems as though you’re staring down the gullet of a very ornery bear.
While the tremendous volatility we’ve had to cope with over the past several months has been truly trying, what we have to remember is that, over the past year, stocks have been essentially flat. In fact, during the past 52 weeks, the S&P 500 Index is up about half a percent!
As traders, there are many rules you can follow to help you survive a sideways market. One additional rule to follow is to buy stocks that you think will prevail in both good times and bad. In other words, stocks that will hold up for the long haul, which means several years down the road.
Finding these types of stocks is no easy task. It requires a lot of speculation, and there are always a plethora of variables that can influence a stock, a sector and the economy at large. However, the past is often prologue, meaning we can start our search with companies that have proven track records of delivering big profits through various sideways market conditions.
Talk about an iconic company that’s been around for decades. AT&T (NYSE:T) is one of those stalwart entities with a storied corporate history that continues providing telecom services to each new generation of customers around the world. The latest high-profit area for AT&T is cellular phone service, but no one knows where the possible revenue streams will come from next. One thing for sure is that wherever there’s money to be made in telecom services, AT&T has the fiscal might and management acumen to adapt to and overcome virtually any challenge the future may pose.
No brand is more ubiquitous around the world than Coca-Cola (NYSE:KO). The beverage giant can be found in even the far reaches of the third world, and as third-world nations become second-world nations, and as second-world nations grow their way into first-world status, we are liable to see the already-mammoth Coca-Cola brand become exponentially bigger. KO shares have been huge winners over the past decade. However, the fizz is by no means over. That means investors could continue tasting big returns over the next several years and beyond.