Forget a Market Bottom and Buy These Stocks Now!

If you hit a market bottom, it’s by pure luck and nothing more. Stop trying to hit it and buy these stocks while they’re still cheap.

| More on:
A worker drinks out of a mug in an office.

Source: Getty Images

The TSX is not a solid place to be right now. The market continues to drop after inflation data came in from the United States, with consumers continuing to spend, despite increasing interest rates. A recession in the U.S. at least should come in 2023, and it’s making investors nervous. But if you’re hoping to hit that market bottom, stop it right now.

If you manage to hit the market bottom before stocks rise again, let me tell you that it is purely coincidence. While this certainly is the best time to invest your cash and see returns only rise higher from there, how on earth are you supposed to time it? You’re not, which is why you shouldn’t.

Instead, take the win! There are so many stocks that remain down right now. Sure, they could continue to drop until they reach that market bottom. But until then, you’re still getting a deal — one that will certainly rebound in the case of these three stocks.


If you want a stock that’s sure to rebound from a market bottom, it’s Canadian Imperial Bank of Commerce (TSX:CM). CIBC stock is a Big Six bank that has recovered within a year of any economic downturn over the past several decades. This has created a strong reason to invest in the stock alone.

However, it also is the best deal, with the best dividend. After its stock split, CIBC stock is now the cheapest to buy of the Big Six banks. Yet it still has the highest yield at 5.93% and remains in value territory trading at 8.33 times earnings.

Provisions for loan losses make this a great choice right now, as the bank is sure to recover out of this downturn. With shares down 19% year to date, it couldn’t be a better time to buy up this stock for a huge rebound from any market bottom.

Brookfield Renewable

Another strong choice, market bottom or not, is Brookfield Renewable Partners (TSX:BEP.UN). Brookfield Renewable stock isn’t some brand-new growth stock to invest in; it’s been around for decades in the renewable energy sector. And it’s been expanding like crazy.

That includes over the past few years. Brookfield has made new partnerships with countries in Europe looking to create their own in-house power. As more countries do this, Brookfield remains a diversified, long-term stock that pretty much anyone should hold.

Yet again, shares are down 12% year to date after a huge tumble over the last month. Investors can now lock in a 4.49% dividend yield and get a steal of a deal — especially if they plan to hold long term. So, forget a market bottom and, again, take the win!

Lightspeed stock

Finally, this is the trickiest one of the batch. Lightspeed Commerce (TSX:LSPD) has been falling, not just from a market downturn, but from drama starting way back in September 2021. That’s when the stock hit all-time highs, and it’s basically fallen ever since.

But after the short-seller report dust settled, and after the fall in tech stocks, Lightspeed stock has made it out to the other side and shown investors why they should invest. Its US$2 billion in acquisitions are up and running, bringing in astounding revenue. It has a focus on profit that’s been bolstered by its point-of-sales system, running at full tilt with the end of pandemic restrictions. And even though e-commerce stocks are down, they’ll be back up again one day soon.

So, even though Lightspeed stock is definitely the riskiest choice of these three, I’d still consider it today. Even without the market reaching market bottom potentially. Shares are down 53% year to date and 85% since all-time highs. So, I’d simply pick up some shares and turn a blind eye until the stock market recovers. In fact, do that with any of these stocks, and you won’t be disappointed.

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 Amy Legate-Wolfe has positions in Brookfield Renewable Partners, CANADIAN IMPERIAL BANK OF COMMERCE, and Lightspeed Commerce. The Motley Fool recommends Lightspeed Commerce. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

You Should Know This
Stocks for Beginners

5 Things to Know About Cargojet Stock in November 2022

Cargojet (TSX:CJT) stock should continue to see massive growth in the near and long term, thanks to long-term agreements and…

Read more »

Stocks for Beginners

4 Stocks I’d Buy Today and Hold Forever

Are you looking for stocks to buy today and hold forever? Here are four of my top picks!

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Stocks for Beginners

3 Stocks That Lazy Investors Can Buy and Hold for a Decade or More

Are you looking for stocks that you can buy and let run for a decade or more? Here are three…

Read more »

Young adult woman walking up the stairs with sun sport background
Stocks for Beginners

New Investor? Buy These 2 Growth Stocks

These two growth stocks are perfect if you want superior growth in the near future but a long-term hold that…

Read more »

sale discount best price
Stocks for Beginners

Black Friday Sale! Grab These FIRE Stocks Before it’s Too Late

Black Friday isn't just about sales on products, but this year it offers sales on investments! So, pick up these…

Read more »

stocks rising
Stocks for Beginners

3 Renegade Stocks at All-Time Highs That Are Ignoring the Market Downturn

These stocks remain at 52-week highs, but don't let that fool you. They still have so much more growing to…

Read more »

grow money, wealth build
Stocks for Beginners

2 High-Potential Growth Stocks You Can Buy With $5,000

If you have an extra $5,000, a high-risk tolerance, and a long-term investment horizon, consider these growth stocks.

Read more »

Silhouette of businessman sit on chair and hold a cigar and looking at the city in night.
Stocks for Beginners

2 TSX Stocks That Could Make You Rich by Retirement

Invest with a long horizon and you can build a fortune for retirement. Here's two top TSX stocks that could…

Read more »