The stock market correction has really put some on the sidelines. And it’s hard to blame them with President Trump’s tariffs threatening to spark some sort of Canadian recession. Indeed, it’s hard to know what to do whenever words can move markets in such a sudden and sharp way. You could buy a few shares today and easily be down by as much as 5% or even more in any given week. Given all of this volatility, it seems like a prudent idea to just stay put and wait until things become calmer. Undoubtedly, if you wait for markets to settle, the cheapest of bargains may be gone. And while buying them after a few strong sessions may seem like a smart idea to steer clear of any further downside momentum, I’d argue that a few “fake-out” rallies may leave one feeling even more pained.
Indeed, the S&P 500 bounced just shy of 5% after it fell into a correction, only to plunge by close to 3%. Of course, only time will tell if the latest relief bounce is a dead cat’s bounce. Either way, investors should not try to time this bottom because, like it or not, Mr. Market has absolutely no idea when you’ve picked up a few shares. Heck, he’ll continue to act irrationally on the back of rising threats to impose tariffs that may have been higher than expected.
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Don’t expect tariff turbulence to back off anytime soon
For new investors, riding out the waves over the medium term (think the next few quarters) could prove wise. Could we get relief on tariffs in a matter of just a few weeks or months? Sure, but you should be ready to ride out what could be a full year of back-and-forth tariff discussions.
And in a bear-case scenario, no deal may be reached after many months or quarters of brutal tariffs. Either way, staying the course and not giving in to the scary headlines surrounding Trump may be the best move. In this piece, we’ll look at one of the lower-beta names I’d be inclined to scoop up for long-term appreciation and a bit of dampened downside should this correction turbulence continue rattling your Tax-Free Savings Account or Registered Retirement Savings Plan for another few months.
Fortis
Fortis (TSX:FTS) is a perfect way to ride out more violent market waves. The stock itself has been making up for lost time in the first quarter of 2025, gaining close to 11%. Indeed, it didn’t take all too long for the former utility laggard to become a leader. If tariffs remain the top story for the entire year, it’s my opinion that shares of FTS have a pretty good chance of topping the TSX Index on the front of returns.
The highly regulated utility provides a sense of certainty in a highly uncertain climate. With a 20.3 times trailing price-to-earnings ratio and a 3.75% dividend yield, I’d prioritize the name for those seeking to reduce turbulence without having to compromise all too much on the return front by dumping one’s stocks for bonds or even cash.
