At this point, you won’t be able to find many TSX stocks that aren’t currently trading at a discount. The S&P/TSX Composite Index dropped a staggering 8% in two days last week, putting the index at a loss of about 5% on the year now.
The saying goes that stock markets hate uncertainty, and we sure saw that last week. It’s anybody’s guess as to what the tariff situation will look like in the coming weeks. At this point, the stock market is reacting in real time to President Trump’s every word around tariffs.
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Investing during volatile market periods
In the short term, it’s not easy for even the most seasoned investors to see these types of losses. Long-term investors know that the market will, at some point, turn around, but that doesn’t make these volatile market periods any easier to endure.
If you’ve got some cash to spare, as well as patience and a long-term time horizon, now could be an opportunistic time to be investing. That being said, it’s important to keep in mind that we very well could be only at the beginning of a significant downturn. Investors need to be prepared for the potential of much more pain before seeing any gains.
With that in mind, I’ve put together a well-rounded basket of three proven TSX stocks. Long-term investors who are willing to brave the market’s current uncertainty should have these three companies on their radar.
TSX stock #1: goeasy
goeasy (TSX: GSY) is an under-the-radar growth stock that has a proven track record of delivering market-beating gains.
The consumer-facing financial services provider has struggled during this high-interest-rate environment. But as we’ve seen interest rates begin getting cut, the stock has responded positively.
Currently, shares are down 35% from all-time highs. Even so, the growth stock is up a market-crushing 250% over the past five years.
Growth investors shouldn’t sleep on this discount. goeasy is as dependable of a market-beater as you’ll find on the TSX today.
TSX stock #2: Brookfield Renewable Partners
The renewable energy sector was in turmoil far before any talks of tariffs. The sector as a whole has been on the decline since early 2021. It’s worth noting, though, that the recent downturn came after a huge surge in growth in 2019 and 2020.
If you’re bullish on the long-term rise in renewable energy consumption, now could be the time to put your money to work. That is, as long as you’re in it for the long haul.
Brookfield Renewable Partners (TSX: BEP.UN) is a perfect all-around stock for anyone new to the sector. The $18 billion company has a global presence and boasts a well-diversified portfolio of energy assets.
At today’s stock price, the company’s dividend is also yielding a whopping 7%.
TSX stock #3: Bank of Nova Scotia
During volatile market periods, you can’t go wrong with owning a trustworthy Canadian bank.
The Big Five aren’t known for their market-beating returns. However, they can provide a portfolio with defensiveness and a whole lot of passive income.
At 6%, Bank of Nova Scotia (TSX: BNS) is currently the highest-yielding of the Big Five. The bank has also been paying a dividend to its shareholders for close to 200 consecutive years.
If passive income is what you’re after, Bank of Nova Scotia should be at the top of your watch list.
