When markets are falling, it can be easy to get caught up in watching the stocks you own lose value rather than watching for the best discounts in the market and buying stocks as they sell off.
After all, if you’re a long-term investor that plans to hold these stocks for years to come, their value today doesn’t mean all that much. And if you own high-quality companies, you shouldn’t have to worry about how they may temporarily perform in this environment.
That’s why, rather than focusing on your own investments losing money, you should be watching the highest-quality stocks on your buy list and looking for incredible discounts to take advantage of today.
This is why it’s crucial to continuously keep a long-term mindset. Not only do we want to buy stocks now to hold long term, but we also need to analyze how businesses will perform over the long haul and how much potential they have long after this economic environment has ended.
Therefore, while markets are selling off, here are three stocks at the top of my buy list.
A top Canadian financial stock
One of the fastest-growing stocks in recent years and one of the most attractive stocks to buy now is goeasy (TSX:GSY), a specialty finance company.
goeasy is a relatively small stock worth just $1.7 billion, which has allowed it to grow rapidly in recent years, as it quickly expands its loan book. However, in addition to goeasy’s growth, the company’s economics and margins are also impressive, which is why it’s one of the best stocks to buy while it’s cheap.
Plus, in addition to its long-term growth potential, goeasy also returns capital to investors. And after its massive selloff this year, the stock now offers a yield of roughly 3.5%, making it one of the best stocks to buy, as markets sell off.
It’s not uncommon in this environment to decide to add to positions in stocks you already own in addition to buying new businesses for your portfolio. After all, the stocks you already own should be some of the best companies on the market. Otherwise, why buy them in the first place?
And so far, throughout the year, with goeasy selling off by 40%, it’s one of the top stocks I’ve been consistently buying more of.
It’s worth noting that goeasy does have some heightened risk as the economic environment deteriorates. However, given its impressive economics and how well it’s managed risk in the past, it’s the perfect stock to buy cheap today and hold for years to come.
One of the best real estate stocks in Canada that I’ve been buying through the market selloff
InterRent REIT (TSX:IIP.UN) is another stock I own and have kept my eye on throughout the selloff in 2022.
The residential real estate investment trust (REIT) owns properties in Ontario, Quebec, and B.C and has long been one of the best REITs to buy for growth.
InterRent is constantly looking at how it can best deploy its capital to grow the value of its funds and the cash flow that the business earns for investors. That includes buying new properties to add to its portfolio or, in some cases, investing in renovations and upgrades to its existing properties.
For years, this strategy has paid off and led InterRent to achieve impressive growth. However, now that the stock has fallen due to market conditions, it’s one of the top stocks I’ve been buying.
Plus, in addition to its excellent growth potential and the value you can buy it at today, InterRent is also a Dividend Aristocrat that consistently increases its distribution each year.
One of the top defensive growth stocks for this environment
Last on this list and one of the best stocks to buy in this environment is Jamieson Wellness (TSX:JWEL). Jamieson manufactures, markets and retails many health products, including vitamins and other supplements.
This is an extremely defensive business that should see only minor impacts from a recession. However, Jamieson is also an incredible long-term growth stock — something you often have to trade off if you want to buy low-risk stocks.
Therefore, as markets sell off and a potential recession looms, a defensive growth stock like Jamieson is one of the best to buy today.
