Here comes that wave of volatility again. With the TSX Index giving back a good chunk of the gains from the first half of January, and the S&P 500 plunging into the red for 2026, TFSA (Tax-Free Savings Account) investors might feel a bit better by sitting on the sidelines to wait out the rougher terrain.
Undoubtedly, stocks are still expensive and close to their highs (the TSX Index is off just over a percentage point), so there’s no rush to be a hero, especially as we learn more about the situation going on in Greenland. Of course, geopolitical uncertainty can be scary, especially if the market is going for a premium price tag.
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So, why not wait things out, especially if you’re doing fine with a TFSA savings account?
Of course, it’s times like these when there are deals to be had. When you wait for the air to clear and the momentum to go into high gear, you’ll pay a higher price of admission again. Indeed, a 1–3% discount on a stock off its highs hardly seems like a great deal and, for the most part, you’d be right to wait for something better. At the end of the day, nobody is forcing you to make a move, especially as negative momentum begins to accelerate.
Of course, there’s also no bell that goes off when it’s the absolute perfect time to buy, and if there are stocks that have fallen faster and harder than the market averages, you could run the risk of foregoing a pretty good deal (if not a great one) by not biting on the harder-hit names that you firmly believe are being dragged down.
Even if there’s an opportunity to take profits off your risk-on names, you shouldn’t seek to throw the baby out with the bathwater. In any case, this piece will focus on undervalued buy candidates that might be worth braving as the S&P comes in and we’re dealt what could be another Trump-fuelled Liberation Day-esque kind of correction.
Even though things seem scary, it’s sell-offs like these that are par for the course, and I believe they’re healthy, rather than bad for the longevity of this bull market, especially considering all the froth that’s formed on some parts of the tech sector.
So, in short, stay calm, be cool, and be ready to swing your bat if a pitch is thrown in a picture-perfect spot! Here’s a stock I think could prove buyable over the coming weeks, whether or not the dust settles on the Greenland anxiety.
Aritzia: A perfect growth stock that’s coming in
Aritzia (TSX:ATZ) has been an absolute growth darling on the TSX, and as shares come in, I think they will eventually be worth adding to as greed turns to fear. Artizia shares are officially in a correction, now down 12% from their peak. And with sales momentum picking up speed, I’d not bet against the name as it comes in, especially as the brand resonates with American consumers in a way that’s enough to offset the impact of tariffs.
Is ATZ stock pricey at 41.4 times trailing price-to-earnings (P/E)? I’d say so, but it’s far less pricey than a few weeks ago. Either way, I think it’s a must-watch TFSA growth stock to keep tabs on, especially since shares appear to be falling at a time when the business couldn’t be any hotter as growth goes into overdrive. Of course, do be ready to ride the stock lower if the sell-off worsens, given the 1.7 beta entails the potential for steeper downside than the TSX Index.
