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5 Top TSX Stocks to Buy if the Market Crashes Again

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The market crash that started in late February and accelerated in early March caught a lot of investors off guard. But just as fast as many TSX stocks fell, the top businesses came roaring back, as investors bought up the shares at bargain prices.

This all happened so fast that there’s a good possibility many investors missed the bottom and their chance to lock in high-quality investments at exceptional prices.

It’s not all bad news, however, as many investors and analysts think there is more downside ahead. So, if there is, investors need to learn their lessons from the last time and be ready to buy these businesses as soon as possible, especially since nothing is stopping the market from another rapid rebound.

To help make these investment decisions at the drop of a hat when the price is right, it’s helpful for investors to make a list of their top businesses now.

This way, when the price drops to what you deem to be below fair value, you already know what you’re buying, and you can have confidence in making an investment at those prices.

So, without further ado, here are the top five TSX stocks I’d be ready to buy if the market crashes again.

Railroad TSX stock

Canadian National Railway is one of the top TSX stocks to own long term. The company is a staple of the Canadian economy and a core portfolio holding you’ll never have to sell.

Because of its prestige, the company is almost always trading at a premium. This makes market crashes some of the best opportunities to increase your position in this top long-term investment.

Convenience store business

Alimentation Couche-Tard is a massive global operator of convenience stores and fuel service stations. This gives Couche-Tard a highly defensive business.

The stock has grown rapidly through both acquisitions and organically. This incredible growth has made Couche-Tard one of the best growth stocks on the TSX.

Telecom TSX stock

BCE is the largest telecom and a great long-term TSX stock to buy in a market crash. Not only is the telecom industry a staple, but it’s in a great long-term growth industry.

With the introduction of 5G right around the corner, many of these stocks are on the cusp of a significant increase to their business. And BCE has built out a tonne of infrastructure in preparation.

With 5G will come the next wave of technology, and it won’t exist without top TSX stocks like BCE.

Renewable energy investment

Another top long-term growth industry is renewable energy, and one of the top stocks in that industry is Northland Power.

Northland’s main renewable generating assets consist of offshore and onshore wind farms as well as solar assets. In total, the company has roughly 2,000 megawatts of generating capacity. However, it has another 1,000 megawatts in development, representing superior long-term growth potential.

TSX gold stock

This time around, it may be prudent to add a top gold business to your portfolio, such as Barrick Gold. Over the past few months, governments around the world have issued tonnes of stimulus, creating the perfect environment for gold prices.

Barrick is the top gold-producing stock on the TSX. Year to date, the stock is already up more than 50%, and there is potential for it to continue to climb much higher.

Bottom line

Knowing what your preferred long-term investments are before the market crashes can give you a significant advantage when you see your target TSX stocks hit a favourable price.

It’s always prudent to do one last check and make sure any new developments aren’t hurting the business. However, as long as it’s a quality long-term investment, and you believe the price is right, then it’s an investment worth making.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa owns shares of NORTHLAND POWER INC. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of and recommends Canadian National Railway. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC and Canadian National Railway.

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