There were lots of question marks heading into 2023, but the Canadian stock market has held up well so far. Volatility hasn’t slowed all that much from last year, but the S&P/TSX Composite Index is still up more than 5% year to date.
The hot start to the year puts the Canadian stock market up more than 10% over the past six months and near positive territory over the past year. Don’t look now, but we may be headed for all-time highs sooner rather than later.
Now’s the time to load up on TSX stocks
We’re not out of the woods yet, but there’s light at the end of the tunnel. Interest rate hikes have taken a pause, as inflation is showing signs of cooling. Those are certainly two reasons for the market’s strong push over the past month.
With a potential rebound ahead of us, I’d urge all long-term investors to think about putting some cash to work today.
For investors with a few companies on their watch lists, now may be a wise time to think about starting a position. Even with the market’s strong start to the year, there are still plenty of deals to be taken advantage of on the TSX.
I’ve reviewed two companies that I’ve got at the top of my own watch list right now. Over the long term, these are two TSX stocks that you can count on.
TSX stock #1: Brookfield
Anyone that could use a little extra diversification in their portfolio should have this company on their radar.
Brookfield (TSX: BN) is a global asset manager with a portfolio of assets worth more than $800 billion. The company owns assets in a wide array of sectors, including real estate, renewable energy, infrastructure, and private equity. It’s due to that wide-ranging portfolio of assets that the stock is able to provide an investment portfolio with loads of much-needed diversification.
As diversified as the stock is, though, Brookfield is no stranger to delivering market-beating returns. Not even including dividends, shares have doubled the returns of the broader Canadian stock market over the past five years.
Alongside many other stocks on the TSX, shares of Brookfield are currently trading at an opportunistic discount. The stock is currently priced close to 30% below all-time highs that were set in late 2021.
No matter the type of investor you are, you can’t go wrong with owning shares of this dependable stock over the long term.
TSX stock #2: Descartes Systems
Investors looking for a more growth-oriented pick may be interested in this top tech stock.
Descartes Systems (TSX: DSG) is one of the few companies in the tech sector not trading at a discount today. Shares are up a market-crushing 35% over the past year. Going back five years, the tech stock is nearing an incredible 200% return.
Compared to Brookfield, volatility levels will understandably be higher with Descartes Systems. The trade-off is the opportunity to earn market-beating returns. And the tech company has done nothing but that over the past two decades.
If you’re willing to pay a premium, this is a tech stock that’s primed for many more years of outperforming the market.
