The S&P 500 is up nearly 9% this year already. By all measures, if the market were to trade flat here for the rest of the year, it’d have been a good year for the market. These recent highs also represent the highest that the S&P 500 has ever traded.
Currently, just a handful of points off its all-time high, many investors are becoming weary of an upcoming market correction. However, despite these elevated prices, I’m still thinking of adding more money to the market. That’s because I believe time in the market beats timing the market. Instead of waiting for an opportune moment, it’s been shown that it’s better to just get that money into the market and let it work for you.
In this article, I’ll discuss two stocks that I’ll continue to add to my Registered Retirement Savings Plan (RRSP).
This is my top stock
If I could only add to one stock to my RRSP today, it would be Constellation Software (TSX:CSU). For new investors, this is the best company you’ve never heard of. Constellation Software isn’t as well known as it should be because it doesn’t operate a consumer-facing business like many of the popular tech stocks. However, it’s just as impressive as any.
Constellation Software focuses on acquiring vertical market software (VMS) businesses. It also provides the resources necessary to turn those acquisitions into exceptional business units. Since its founding in the 1990s, Constellation Software has managed to perfect its acquisition strategy. The company has acquired hundreds of businesses, allowing it to grow steadily year after year.
This success can be seen in Constellation Software’s stock price. Since listing on the stock market in 2006, the stock has gained nearly 20,600! If you had invested $10,000 in this stock any time before 2008, you’d be a millionaire today. This year, alone, Constellation Software stock has gained 16.4%. While that may seem like a tremendous result, historically, Constellation Software is capable of more. That’s why I’ll continue to buy shares in this company even with the market trading so high.
Another great tech stock
Shopify (TSX:SHOP) is another stock that I’ll continue to purchase shares of despite how high the S&P 500 continues to trade. During times like this, when you fear an upcoming correction, it’s important to put your money towards companies that you think will be able to weather the storm.
Shopify is a leader in the global e-commerce space. The company provides merchants of all sizes with a platform and many of the tools needed to operate online stores.
This stock has been very polarizing over the past couple of years. There are many investors who believe that Shopify’s best days are behind it. However, I strongly oppose those views. In 2023, the company posted US$7.1 billion in revenue. That represents an increase of 26% year over year. In addition, Shopify’s share of the massive U.S. e-commerce market now exceeds 10%. If that trend continues, then we could really still be near the start of Shopify’s tremendous growth story.
