The TSX Index is down more than 7.1% through the first four weeks of October.
If the current trend holds up, it means that October will mark the third straight month of declines for Canada’s benchmark index.
That said, you needn’t spend time stressing about it.
These three companies are some of the most central figures within the Canadian economy.
Even if the markets have a little trouble deciding which direction they’re heading over the next little while, you can be rest assured that once the dust has settled and the smoke has cleared, these three companies will still be very much alive and well.
One thing that we know every economy need is energy.
Interestingly, there are some pretty exciting developments happening in the renewable energy sector these days, but those companies still require massive amounts of upfront investment.
While that’s not necessarily a terrible thing, it does make those companies slightly more vulnerable if interest rates were to rise or the economy was to slow down suddenly.
In the meantime, Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of the largest energy companies anywhere in the world today and certainly one of the largest companies in Canada of any kind.
Suncor owns more of the country’s vast oil sands assets than any other competitor.
While it’s true that a significant portion of those assets are uneconomical at current prices for oil and gas, SU stock is a very solid long term play and pays a dividend yield of 3.11%, allowing you to take advantage of the power of compound interest while you sit back and play the waiting game.
Another thing — every economy needs real estate.
Brookfield, which has several listings on the TSX, is the largest real estate vendors in Canada and one of the largest property managers globally.
One of Brookfield’s entities is Brookfield Property Partners (TSX:BPY.UN)(NYSE:BEP).
BEP stock is yielding a very attractive 6.28% heading into this week’s trading following a nearly 7% hike earlier this year.
Moreover, the shares are trading just off their 52-week lows, making it suitable for contrarians and value investors.
And of course, both of the aforementioned companies and nearly every other single economic actor need someone to handle their money and lend them credit.
Royal Bank is one the largest banks in the world and officially one of the previously named SIFIs (systemically important financial institutions) by U.S. regulators.
Royal Bank has leveraged the strength it demonstrated during the 2008-09 financial crises to make significant inroads into several key foreign markets over the past decade.
That’s gone a long way to helping it decentralize its exposure to Canada’s inflated credit markets, which could prove valuable for the bank and its shareholders should the state of Canadian’s balance sheets suddenly take a nosedive.
When you buy heavily cyclical stocks at low prices… and then hold the shares until the cycle reaches its peak… you can make a very healthy profit.
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Fool contributor Jason Phillips has no position in any of the stocks mentioned.