To say that the stock market has been less than ideal this year would be an understatement. When it finally seemed like the global economic situation might start recovering after the pandemic, a slew of issues sprung up worldwide. There is a lot to worry about, from problems with global supply chains to rising oil prices, the war in Ukraine, record inflation levels, and interest rate hikes.
You are not alone if you are worried about a stock market crash. Many investors fear that a recession will hit the markets soon. While we cannot predict when or even if a market crash will happen, it is a good idea to be prepared for that possibility.
Market crashes might devastate your investment returns. However, seasoned investors with long investment horizons use it as an opportunity to add high-quality assets to their portfolios for a bargain. It might be a good time to re-evaluate your portfolio and add assets you can buy and hold for the long term.
Today, I will discuss two such stocks I own and that I’d buy more of if a market crash happens.
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Canadian National Railway
Canadian National Railway (TSX: CNR)(NYSE: CNI) is the epitome of long-term, buy-and-hold assets on the TSX. The $112.13 billion market capitalization railway headquartered in Montreal owns and operates an extensive railroad network spanning North America.
It is the only railroad with direct access to three different coastlines on the continent, giving it a massive competitive advantage in the largely consolidated industry.
The railroad is responsible for transporting over $250 billion of goods each year, serving several sectors of the economy. Generating revenue from several industries gives it an advantage, because it can decide to ramp up or slow down and focus on different freight types based on current demand.
As of this writing, CN Railway stock trades for $162.22 per share and boasts a 1.81% dividend yield. There are no competitors that can match its network right now. It is a defensive and secure business. It could be an excellent long-term investment.
Enbridge
Enbridge (TSX: ENB)(NYSE: ENB) is a $114.52 billion market capitalization energy company headquartered in Calgary. It owns and operates an extensive energy transportation infrastructure responsible for delivering a sizeable portion of all the hydrocarbon products used in North America. Like CN Railway, it is a highly defensive business that provides an essential service to the region.
The company’s pipeline business transports almost a third of crude oil produced in North America. Its pipeline network generates revenue that is not impacted by changing oil prices, allowing it to fare better than other energy companies when oil prices are volatile.
Additionally, the company has been increasing its renewable energy portfolio for several years to prepare to transition away from fossil fuels.
Enbridge stock trades for $56.56 per share at writing and boasts a 6.08% dividend yield. It could be a good addition to your portfolio.
Foolish takeaway
A warning before investing: The stock market is inherently risky. There are no assets on the stock market without risk. Canadian National Railway stock and Enbridge stock have proven to be excellent long-term buy-and-hold assets through their historical performance, but past performance does not predict future results.
If you are willing to accept the likelihood of further short-term pains if the market crashes for the potential of long-term gains, Enbridge and Canadian National could be good investments to consider for your portfolio.
