It’s a scary time for investors, yet again. It doesn’t seem like that long ago that we were suffering after the March 2020 crash. While this recent downturn isn’t as drastic as the one two years ago, it’s still incredibly dramatic. And unfortunately, it may not go away as quickly.
What’s going on
We have a serious situation around the world right now that, unfortunately, appears to only be getting worse. There was the pandemic, followed by the boom in stocks, but the last few months have seen a cataclysmic collapse. This comes from the combination of increasing interest rates, rising inflation, higher gas prices and of course the Ukraine crisis after the Russian invasion.
The invasion is what really brought things to a head. The combination of rising oil prices and the invasion leading to sanctions led to a deathly fall in the market. So now investors worry whether they should be looking at this as an opportunity, or to sell out of fear.
Don’t fear the fall
Fear is your worst enemy when it comes to investing. It’s times like these when investors need to look at how they can be greedy and not fearful, as the great Warren Buffett once said. But granted, if you have a Tax-Free Savings Account (TFSA) with your life savings in there, it can be hard not to be fearful.
That’s why it’s a great time to look at strong companies for your TFSA that can provide growth while keeping your investments safe. What you need to consider are companies that will continue making money no matter what’s going on around the globe. Companies that will continue to climb, and have been for sometime.
That’s why today I’m recommending Nutrien (TSX:NTR)(NYSE:NTR).
Why Nutrien stock
Nutrien stock is the perfect long-term hold for any TFSA. Shares of the company are up about 76% over the last year, and climbed 33% in the last month alone. And that climb comes from a few factors, including from the Ukraine crisis. With less options for crop nutrients, the world’s largest potash producer can now claim even more countries to explore.
And it’s already in so many. While the world’s arable land gets smaller, the population is only getting bigger. That of course includes places like India and China, where Nutrien stock already has their foot in the door. Furthermore, as the world changes, so too has Nutrien. The pandemic could have shut it down, but instead it saw the golden opportunity to create an e-commerce arm that’s now outpacing in-store sales.
Bottom line
Nutrien stock is the perfect stock for those with a TFSA wanting safety and growth. There has been insane growth from the company over the last year, but it’s been warranted for so long by analysts. It still trades at just 18 times earnings, just shy of value territory, and 1.89 times book value. It offers a 1.89% dividend yield, and a solid business model to see you through decades of growth.
So for Foolish investors wanting safety and growth, that’s easy. Pick up some Nutrien stock and hold it for as long as you possibly can.
