If you’ve got an extra $2,000 that you’ve been meaning to put to work but just haven’t found the perfect opportunities, the fourth quarter may present some interesting opportunities to deploy the cash. Indeed, it’s been a rough start to the month of October, with the port strikes and the situation in the Middle East.
With an election just over a month away and stocks flirting with new heights, it can feel tempting to wait things out. After all, the recent wave of negative headlines and geopolitical tensions doesn’t exactly make for a peaceful slumber, even if you’re invested in some of the safest and soundest names on the TSX Index.
Either way, a $2,000 sum sitting around will continue to be beaten down by what remains of inflation. Sure, the opportunity cost of holding dry powder has gone down along with inflation. However, I do think that continuing to pass up on great market bargains in search of an ideal time could cost you.
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Don’t wait to put that $2,000 to work. Invest today.
Indeed, sometimes you have to invest with the expectation that you’ll probably be slapped with a correction right off the bat. If you don’t sell your stock, you really won’t realize the loss, especially if a swift rebound follows. If you’re worried about an ensuing sell-off at or around U.S. election season, perhaps putting $1,000 in a name with the intention of investing the next $1,000 by December makes the most sense.
That way, you don’t need to constantly tune into the headlines, fearing that your investment will shed more of its value in a hurry. If you’re less anxious about exogenous events, you’ll be in the mindset to make smart, calculated decisions. And, at the end of the day, that’s how to invest wisely in almost any market condition.
So, forget about timing the market and get started investing in stocks if you think the price of admission is fair (or low), regardless of what pundits and talking heads forecast is up for the markets next because their prediction will likely be no much better than a coin toss, at least in my very humble opinion.
Waste Connections turns trash into cash flows
What are the best stocks to invest in right now?
Personally, I’m a fan of a name like Waste Connections (TSX:WCN). It’s a boring waste collector that’s grown via smart M&A over the years. The business model may stink, but the earnings growth couldn’t be more pleasant.
The stock has gained more than 93% in the past five years. That’s a pretty solid return for a company that’s not risking its financial well-being on technologies (think generative AI) that may never end up paying the bills. Sure, AI could generate substantial cash flows in the future. However, for many firms, AI R&D will be a cash sink, with no real endzone in sight.
Given this, I think Waste Connections is a fantastic low-tech gainer to pick up while it’s down more than 5% from its peak. It’s a modest half of a correction, but one I’d be willing to pick up. At 53.1 times trailing price-to-earnings (P/E), the stock’s pricy, but not as pricy as it could be given its wide moat, which allows it to be a price setter in almost any economic climate.
