Interest rates were the headline last week, and remain so this week with investors seeking out investments as confidence builds. But where should those investments be? During a market downturn, we see investors flock to safety – investments like utilities, consumer staples, and other areas of the market.
But what about during times of growing confidence in the market? That’s where we’re going to look today. But don’t worry, if you’re looking for safety still, we’ve got you covered.
Where to look
Just as there are areas to look when a bear market starts, a bull market starting up offers just as many opportunities. So let’s go over a few of the areas where investors might want to start looking.
When a bull market starts to rise, investors typically look into sectors that are poised to benefit from economic growth and increasing market confidence. So that would mean looking at areas such as tech, consumer discretionaries, financials, industrials, materials, healthcare, and real estate.
All well and good, but that’s a lot of different areas to invest in. So, which perhaps offer the best opportunities right now?
Merge!
Instead of identifying companies that offer one thing or another, look for companies offering a few things. Several of these sectors likely have ways to invest in numerous areas, rather than just choosing one company that focuses on one thing such as tech or healthcare.
So now, let’s merge these areas together. We’ll look at companies that are due to climb because they don’t just offer one bull-market buy, but several. Without further ado, let’s get into it.
The best stocks to buy
First, we’ll start with tech and consumer discretionary. For this, I would look to Shopify (TSX: SHOP). As interest rates fall, consumers have more cash on hand. And when this happens, they’ll want to spend more online, and e-commerce continues to be one of the fastest-growing areas. The demand will likely result in a huge rise in earnings for Shopify stock, making it an excellent buy option right now. And with its Buy Now Pay Later programs – identified by Shopify as one of the fastest-growing e-commerce trends in 2024 – this could be a strong play in the e-commerce market for a bull run.
Then there’s industrial real estate, and for that we can look to Granite REIT (TSX: GRT.UN). The company holds industrial properties across North America, and that market continues to expand. It provides long-term lease agreements, with a solid occupancy rate and growing portfolio. And with a dividend yield at 4.9%, that’s an added bonus for sure. So as the stock continues to expand its global footprint, more earnings are sure to flood in during a bull market.
Then, let’s get into healthcare and tech. Here investors will want to consider WELL Health Technologies (TSX: WELL). The company has already seen more interest as it continues to see its earnings surge, both through acquisitions and organic growth. WELL stock may still be down by 30% in the last year, but investors are likely to see this change in the future once the market starts to rebound. Especially with its integration of HealWell, an artificial intelligence (AI) service that will put it ahead of the rest in a bull market.
Finally, let’s look at materials and energy. For this, I would consider Cameco (TSX: CCO), which has been a diamond in the rough. The company is the world’s largest publicly traded uranium producer. As nuclear power continues to be the number one source of clean energy around the world, Cameco stock is likely only to rise higher in share price. U.S. restrictions on Russsian uranium imports is one recent development driving uranium prices higher and opening up new potential markets for Cameco. So as the bull market starts up, it’s likely that Cameco stock could go parabolic.
