Where to Invest $1,000 in December 2023

If you have $1,000 and you’re a little nervous about parting with it, you can’t go wrong with these two essential stocks on the TSX today.

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Canadian Dollars

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Canadian investors are still a bit on edge when it comes to the market these days. Clearly, there’s reason, as we’ve been burned several times over the last year. The TSX today remains above $20,000, but that certainly hasn’t lasted in some cases. So, where should investors put that $1,000, and should they invest?

Timing or time in?

Right now, many Canadian investors may worry about whether the market is going to drop. This is for two reasons. First of all, they clearly do not want to lose out on any gains they’ve made. But also, the old saying to “buy low, sell high” rings true in this case. If you want to make quick returns, buy low, then sell high, right?

The thing is, the best gains aren’t from trying to time the market in this way. It’s impossible to time out when the market bottom will be. Moreover, anyone who manages to do this has certainly done so by accident.

Therefore, time in the market is far more lucrative. This means you get into your investments pretty much whenever you can. Then you hold them as long as you can. This long-term strategy has long been the key to success.

Where to put $1,000

With this in mind, it’s always a good idea to get into the TSX today. But where? You want stocks that aren’t going to suddenly drop off the face of the earth — ones that you can hold on to for years, even decades, and find success!

In that case, you need to look for essentials. Companies that will be around no matter what happens in the market. Recession, pandemic, anything. I recommend finance stocks in many of these cases, though if you’re worried about a recession when you want to take out the cash, these may not be the best options.

That’s why essential goods and services are a great option instead. Items that have done well no matter what is going on. And there are two companies I would therefore put to use right now.

Going essential

If you have just $1,000 you want to put to good use, consider Dollarama (TSX:DOL) and Topicus.com (TSXV:TOI). Both these companies provide essential services that won’t simply go away overnight. Moreover, they have proven worth even in these last difficult years.

Dollarama stock provides essential products as well as discretionary items. The company has done well during downturns and even during the pandemic. We need these items at the best cost, and this stock has done well for it. What’s more, it continues to grow even out of downturns thanks to expansionary measures. So, even with shares up 22% in the last year, it’s still a buy in my books.

Topicus stock is a bit different. It’s a spinoff of Constellation Software, but it’s already making a name for itself. This is because CSU stock is managing the company’s growth in Europe. It undergoes the same strategy of buying smaller software companies proven essential and putting them out under the Topicus/Constellation name. So, again, even with shares up 33% in the last year, it’s a strong option for your $1,000.

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 Topicus.com. The Motley Fool has positions in and recommends Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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