A $15,000 Investment Approach for Changing Market Conditions

Considering the current situation in stock marets, it’s important to be careful how you invest your money to make the most of it.

The current market situation is strange, to say the least. As of this writing, the S&P/TSX Composite Index, which reflects the performance of the Canadian stock market, is up by 18.26% from its April 8, 2025, low. The Bank of Canada is also enacting reductions in interest rates, leaving more money for consumers to spend.

However, the threat of Trump’s tariffs still looms overhead. The fact that imports and exports are becoming pricier means inflation is getting another bit of wind in its sails. Until there is better clarity on how things will play out in the long run with the ongoing trade tensions, many businesses are slowing their investments. Plenty of investors are also wondering how to allocate funds in the stock market right now.

Despite being on a bull market run, there is no doubt that uncertainty exists. Against this backdrop, it might be more important than ever to be careful with how you invest. I will discuss three TSX stocks that might be good opportunities to consider.

investor looks at volatility chart

Source: Getty Images

Canadian Natural Resources

Canadian Natural Resources (TSX: CNQ) is a giant in the Canadian energy industry. The $94.34 billion market cap energy company is one of the largest crude oil and natural gas producers in Western Canada. It also has offshore operations in Africa and in the North Sea that further diversify its revenue streams. The company produces a diverse portfolio of hydrocarbons.

Much of the commodities produced and transported by Canadian energy companies are exported to the U.S., and tariffs have had an impact on financials. CNQ is one of the most reliable Canadian energy producers and is well-positioned to weather the storm. As of this writing, CNQ stock trades for $45.07 per share and offers quarterly distributions at a 5.21% dividend yield.

Descartes Systems Group

The tech space might be riskier than the energy sector, but there is a way to make the most of it. Descartes Systems Group (TSX: DSG) is an $11.70 billion market-cap tech stock that offers software solutions to the global shipping industry. Its offerings help the supply chain industry by streamlining communication and coordination between stakeholders. The company also offers additional software modules for its core product with a Software-as-a-Service model to generate even more revenue where possible.

Despite being in a volatile industry, DSG stock has a niche that gives it a bit more of a defensive appeal than most tech stocks. The company is addressing the pain points of many suppliers worldwide through its solutions, and the demand will only increase in the coming years. As of this writing, it trades for $137.07 per share.

Loblaw

Playing it safe is a good choice when investing in an uncertain market environment. Loblaw Companies (TSX: L) and its peers can be excellent investments to consider for those with a lower risk tolerance. Loblaw is a $67.44 billion market-cap company that owns and operates one of the country’s largest grocery, pharmacy, and general merchandise retail operations. This is the kind of business that always stays in business due to the essential nature of its offerings.

As of this writing, Loblaw stock trades for $223.52 per share, and it is up by over 46% from its 52-week low levels. If the tariffs don’t go away for a long time, it might lead to tech stocks and energy stocks pulling back. In that situation, investing in Loblaw stock might offset potential losses.

Foolish takeaway

There is always the chance that Canada might be able to negotiate a way out of the tariffs imposed by the United States. If that comes to pass, the riskier investments in tech stocks and energy stocks might pay off with massive returns for investors. However, keeping a defensive play in place is necessary to offset potential losses if things don’t improve.

Investing in Descartes Group stock and Canadian Natural Resources stock can help you leverage tailwinds for both industries when they come around. Allocating a portion of your investment capital to a defensive asset like Loblaw stock can offer some relief from potential short-term losses.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Descartes Systems Group. The Motley Fool has a disclosure policy.

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