Until April, it had been a relatively uneventful year for Canadian investors. The S&P/TSX Composite Index spent the first three months of the year trading mostly sideways. And then came the start of the tariff announcements, which sent the marketing plummeting 10% in less than a week.
Impressively, though, after bottoming out on April 8, the S&P/TSX Composite Index has surged nearly 15%. The index is back in positive territory on the year and seemingly full of momentum.
In the short term, it’s anybody’s guess as to how the market will fare. Things seem great right now, but one tariff announcement has the potential to send the market spiralling again.
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Investing for the long term
The beauty of investing for the long term is that you don’t need to stress over potential short-term volatility. Instead, you can spend your time looking for top-quality companies that hopefully are also trading at attractive prices. And with all of the volatility we’ve seen as of late, there’s no shortage of discounts to choose from on the TSX.
With that in mind, I’ve put together a list of three Canadian stocks that are all trading at opportunistic discounts.
If you’re committed to a buy-and-hold investment strategy for the long term, these three companies should be on your radar.
goeasy
goeasy (TSX: GSY) has historically not been a stock that has gone on sale often. So, with shares down 30% from all-time highs, I wouldn’t suggest waiting around too long if you’re hoping to load up at a discount.
The consumer-facing financial services provider has dealt with a ton of volatility in recent years due to the spike in interest rates. In the short term, we may see that volatility continue. But over the long term, with interest rate cuts likely in the future, now could be an incredibly opportunistic time to start a position in this growth stock.
Shopify
Shopify (TSX: SHOP) is certainly no stranger to volatility either. The tech stock has been on a wild ride since 2020, including plenty of new all-time highs and crushing downturns to match. Today, shares are down close to 40% from all-time highs, which were last set in late 2021.
After the steep sell-off that began in 2021 and lasted for most of 2022, the stock has been on the rise ever since. Shares are nearing a market-crushing 200% return since the beginning of 2023.
If you’re interested in owning shares of Shopify, I wouldn’t expect volatility to slow down anytime soon. But if you’re looking for a stock that’s loaded with long-term market-beating growth potential, this is the company for you.
Brookfield Infrastructure Partners
There’s not a whole lot to get excited about with this dividend-paying utility stock. What Brookfield Infrastructure Partners (TSX: BIP.UN) can provide a portfolio with, though, is dependability and a whole lot of passive income.
For investors who plan on owning growth stocks like goeasy and Shopify, having a few shares of a dependable stock like Brookfield Infrastructure Partners could go a long way. The utility company can help keep volatility to a minimum in an investment portfolio.
At today’s stock price, Brookfield Infrastructure Partners’s dividend is yielding more than 5%.
