An explosive electric vehicle market, a gathering economic downturn, and a Canadian oil boom long in the making. They’re three major trends, and the TSX is standing by to help investors tap into them.
Look out for a lithium upside opportunity
Lithium was also doing badly last week, with investors still eyeing spot prices with distrust. However, all of that could be about to change given that commodities have a tendency to ebb and swell. Yes, lithium is currently grinding lower.
But a supply bottleneck and a sudden burst of increased demand could change that situation overnight.
Lithium Americas is a top stock to play this space. Its fundamentals are appealing, its standing in the lithium mining industry is solid, and it has a great outlook.
In terms of market ratios, Lithium Americas is in line with its peers in the metals and mining sector, while its revenue could grow by around 60% within the next three years.
You can buy a single stock to access the entire economy
CN Rail (TSX:CNR)(NYSE:CNI) is a stock to buy the dip right now. While the strike raised the spectre of national economic vulnerability and demonstrated how exposed the crude-by-rail system is to industrial action, both weaknesses have also demonstrated the sheer might and interconnectivity of CN Rail.
Looking for a single stock that represents the entire economy? CN Rail is that stock.
The impasse itself, with the company calling for a mediator and the union against government intervention, has shown that there is a deep and dangerous divide in the country between the heads of industry on one side and the workforce itself on the other.
It’s a political hot potato, as any legislation seen to side with corporate heads could further isolate an already divided electorate. Down by a few points, CN Rail is a strong play on weakness.
Canadian oil could be about to boom
It would only take two things to cause Canadian oil to boom, and they’re already in the pipeline, so to speak. Weakening American shale output and a breakthrough in pipeline legislation would see the black gold suddenly flowing freely from the West, making investors in companies such as Suncor Energy (TSX:SU)(NYSE:SU) considerably better off.
Should Canada undergo an oil Renaissance, stocks like Suncor would appreciate greatly in value over the long-term. Its fundamentals have been near to market-weight for a long while, even with the sudden inflow of funds from recession-wary investors.
Indeed, up by more than 10% over the past three fraught months on the stock markets, Suncor is a popular choice with a chance of steep capital gains.
The bottom line
If you want to wake up rich, these three stocks would be a good place to start. With a rapidly shifting economic environment, these three potentially lucrative market changes could see Canadian investors add sudden wealth to their stock portfolios.
Suncor is an especially strong play at the moment for its sturdy passive income that can add long-term peace of mind to a portfolio built on strong track records.
