Last week, and so far this week, we’ve seen the market sell off quite significantly, with stocks across several sectors falling in value. For most of the year, the Canadian stocks that had been losing value were strictly growth companies. However, as interest rates are already being increased and set to continue rising rapidly, almost every stock across the market is getting cheaper.
This undoubtedly makes investing more difficult in this environment. We want to take advantage and buy stocks while they’re cheap, but we also don’t want to buy stocks that will continue to fall in value.
It’s crucial to find stocks that can both protect our capital and are also high-quality companies that we can own for the long haul.
Luckily, there are a few Canadian growth stocks that remarkably offer tonnes of defence but can also grow your capital rapidly.
If you’re looking to put your money to work in this economic environment, here are two of the best Canadian growth stocks to buy that can outperform in this environment.
A top Canadian infrastructure stock
One of the best growth stocks you can buy any time, but especially in the current market environment, is a stock like Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP). Brookfield has tonnes of tailwinds in this environment. And because it’s naturally a high-quality, long-term growth stock, these tailwinds are having a major effect on Brookfield.
Brookfield is also the perfect example of the incredible investments you can find when you invest in highly defensive and core portfolio stocks that are also long-term growth stocks.
These companies are some of the best investments you can make because they can protect your capital well while also consistently growing it.
So, Brookfield is one of the best Canadian growth stocks to buy now for that exact reason. The fact that its portfolio is made up of highly defensive assets such as utilities, railroads, telecom towers and much more means you know that the investment is low risk.
Plus, in this high inflationary environment, Brookfield could see significant revenue growth as much of its sales are indexed to inflation.
So, it’s the perfect long-term stock to not only buy in this environment but also hold for years, as it can protect your capital, offer you significant capital gains potential, and will continue to increase the distributions it’s paying to investors.
One of the best long-term Canadian growth stocks
Another high-quality Canadian growth stock that could continue to perform well thanks to the current environment is Dollarama (TSX: DOL). For years, Dollarama has seen its popularity rise and its sales increase, as more Canadians look to save money on essential goods.
Dollarama’s low-cost options and excellent merchandising have helped drive a significant change in consumer habits over the last decade. And as its business has become more popular, this has led the company to open tonnes of new stores as well as continue to drive its same-store sales growth.
So, with inflation at the highest level that it’s been in 40 years now, Dollarama should continue to see more sales growth over the coming quarters while many other companies in the economy continue to struggle.
Therefore, if you’re looking for high-quality Canadian growth stocks that you can buy in this environment and hold long term, Dollarama is a great choice.
