With the Dow Jones Industrial Average coming off one of its worst single-day declines since 2020, many investors may wonder if it’s time to bail on stocks, back up the truck, or start nibbling into the bargains that fly across their radar. Indeed, tariff headlines are undoubtedly “tariff-fying” to a broad basket of retail investors. Indeed, stocks were running hot to start the year. With two straight years of gains over 20%, a correction (the S&P 500 is currently down around 12% after a tumultuous Thursday of trade that followed Donald Trump’s Liberation Day) should not be all too surprising.
If you’ve still got cash, now may be a good time to put it to work, even without any certainty on what the endgame will be with the latest list of Trump tariffs. Indeed, during Liberation Day, Trump brought out a massive list of countries alongside “reciprocal” tariffs to be slapped on.
Of course, it was about more than just Canada, with a 10% base tariff to be imposed on all nations. Though the tariffs were far more widespread than many market watchers were hoping for, I think that we should not discount the potential for negotiations.
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Indeed, with such hefty tariffs, one has to think that the White House phone will be ringing non-stop over the coming days and weeks. And while Trump may not be looking to ink a deal with any nation right off the bat unless there’s a great deal on the table, I think that any news of such deals (especially with Canada or China) could cause a reversal of fortunes.
Either way, the timing of such a deal (if it even happens) is unknown. The big worry is that no deal will be reached until the global economy falls into a recession. The longer tariffs remain (or the more escalation happens), the worse it’ll be for the economy and stocks. While I would not shun stocks today, I prefer stable plays with strong yields.
In this small-cap scene, I’d identified two relatively stable, cheap stocks worth pursuing. Whether you’ve got $100 or $10,000 to put to work, the following could make sense to nibble at. Just be sure you’re not paying trading commissions if you’re putting just $100 to work. With the advent of partial shares, small retail investors can put their limited sum to work on some pretty pricey shares.
Jamieson Wellness
Jamieson Wellness (TSX: JWEL) is a smaller-cap stock with a $1.2 billion market cap that looks worth buying right now. The stock fell 1.5% to around $30 per share on Thursday’s session. And while tariffs could weigh heavily on consumer spending patterns, I still think few folks are willing to trade down to generics at the vitamin aisle.
When it’s your health and well-being, it’s not worth saving a couple of quarters. With a brand renowned for its high quality and promise of delivering what’s on its label, I view JWEL stock as the ultimate mid-cap defensive to hold for the long run. With a 2.75% yield and a 0.83 beta, JWEL shares may help your Tax-Free Savings Account ride out a storm. At 25.25 times trailing price to earnings, you’re getting a lot of robust, resilient growth from such a lesser-known name.
