If you’ve got $5,500 you’ve been meaning to invest in stocks, but have felt a bit of stock buyer’s paralysis amid the recent correction in the S&P 500 and Nasdaq 100, you’re not alone. When volatility strikes, it’s easier to postpone investing decisions. And while it’s fine to buy stocks at higher prices once conditions normalize and it’s not Trump tariff volatility that’s dominating the headlines, I think that those who embrace volatility and take on the most pain as they buy stand to get “deals” on stocks that are that much better. Indeed, nobody wants to run the risk of picking up a few dimes and quarters in front of a freight train, like Trump tariffs, which could really upend the economy in its tracks.
That said, I do think that paying less attention to the week-to-week (or day-to-day when it comes to tariff news) can be a better move as you make investments for the long run. Indeed, in the month of May, I think buying and going away could be more profitable than selling and going away.
May is here. Don’t panic. Pick up a bargain with $5,500 or less.
Sure, buying in May and going away sounds pretty catchy, especially this time of year, when the stock market has been struck with a bit of fear, volatility, and a handful of major analyst price target downgrades. Though the S&P 500 downgrade from big banks may cause you to wait things out, I’d encourage new investors to follow through with the stellar deals that fly by one’s radar. Should you really forego the opportunity to pick up shares of a wonderful company just because of the Trump tariff risks?
If you’ve got a shorter-term investment horizon, tariffs are make or break. However, if you’ve got a long-term horizon in mind, perhaps the “tariff-fying” tariff possibilities should not be as influential. In this piece, we’ll check out a bright mining stock that I think could appeal to those with medium- to long-term time horizons. With the rise of global trade uncertainties, gold has been an unstoppable asset. And many gold bugs think the run could carry into year’s end.
This gold miner stands out from the pack!
Personally, I think gold could shine as long as tariffs linger. Arguably, gold has become the go-to hedge at a time like this. And while loading up on gold bullion could prove a risky endeavour, especially at close to all-time highs (US$3,300 per ounce or so), I think the gold miners are worth more than their weight in gold at current levels!
Indeed, if you owned a gold ETF or a 1-ounce coin, you’ve done quite well in the past year, with around 45.5% in gains. However, if you owned a top-tier miner like Agnico Eagle Mines (TSX:AEM), you enjoyed a near-80% surge. And that’s not even counting the dividend, which currently yields 1.4% and has been growing at an impressive rate of late. In any case, I think Agnico is the new gold standard when it comes to the miners.
You’re getting a solid, fast-growing dividend and levered upside to the price of gold. Of course, mining stocks can fall further when gold finally does fall back. But if you’re well-diversified and seek less beta in a volatile market plagued by tariffs, perhaps the golden opportunity remains in the gold miners. After a strong Q1 and robust production, Agnico seems like it’ll pull further ahead of its peers in the gold scene. When it comes to AEM stock, I think it’s a name to buy for the appreciation and stay for the dividend.
