The year 2026 has kicked off with geopolitical tremors, marked by the Venezuela oil crisis and escalating Iran war. When oil prices increase, inflation increases, making interest rate cuts difficult. What should be your investing game plan in such an environment? Historical trends, as seen during the Russia-Ukraine conflict, Trump tariffs in early 2025, and the Gaza conflict in 2023, indicate that stocks correcting in early months often recover in the latter half as businesses adapt.
A Tax-Free Savings Account (TFSA) is a perfect instrument to invest in opportunistic stocks, as the next two to three years could see remarkable growth in companies with strong fundamentals.
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Navigating 2026: A strategic TFSA investment game plan amidst market volatility
The Iran war has shifted investor focus away from artificial intelligence (AI). However, the AI revolution is here to stay, and the need for AI data centres will grow more than ever as nations invest in technological advancements. The long-term secular trend for AI remains intact, creating an opportunity to buy specific AI stocks.
My TFSA game plan for 2026
AI growth strategy for 2026
Micron Technology (NASDAQ: MU) shares corrected 14% between February 25 and March 6 as investors shifted focus to oil stocks amidst the Iran war. This dip is a buying opportunity as Micron’s growth catalyst of the memory chip shortage persists. The increasing demand for high-bandwidth memory (HBM) from AI data centres encouraged Micron to stop production of mobile and computer memory chips and divert that capacity to server memory chips.
Micron stock has already rallied more than 350% in 2025 and early 2026 on the back of the memory chip supply shock, despite US tariffs disrupting global trade. Unlike the oil supply shock, the memory chip shortage is unlikely to end in 2026 and beyond, as it takes three years to build new capacity.
Considering that 2026 revenue will largely come from high-margin HBM, Micron could see windfall profits. Now is a good time to buy Micron and secure your spot in the 2026 growth rally.
Buying undervalued stocks
Constellation Software (TSX: CSU) stock has been in a downtrend since July 2025 after the founder stepped down and the chief financial officer took the reins. However, the stock price fell 52% over time as fears of AI replacing software companies pulled down software stocks. Constellation used the AI discount to acquire vertical-specific software companies for a total consideration of $1.6 billion in 2025.
Mid-teens revenue jumps did not deter investors from selling Constellation shares. However, the stock selling finally reversed in mid-February 2026 after the company released its 2025 earnings. Although the company’s net income fell by 30%, its free cash flow (FCF) jumped by 14%.
Its biggest acquisition of 2025 was a significant stake in publicly traded software company Asseco Poland through Topicus.com. Their share price will influence Constellation’s share price. Now is a good time to buy the stock as it trades at a price-to-FCF of 18.1, its lowest in 15 years. Investing now lets you leverage the recovery rally as the AI impact becomes clearer.
Monetizing trade uncertainty
The growing geopolitical tensions will keep gold and oil prices volatile. Your 2026 TFSA game plan should include having exposure in Lundin Gold (TSX: LUG) and Canadian Natural Resources (TSX: CNQ). Lundin Gold has the lowest all-in sustaining costs, which can give you a higher share price rally on the gold price rally.
Understand the economic dynamics. Both stocks have a contrarian impact on each other and can act as a hedge against a stock market dip. Both gold and oil prices are linked to the US dollar. America is acquiring world oil reserves to ensure oil trade happens only in US dollars and no other currency.
At the same time, shifting trade dynamics are increasing gold demand as central banks worldwide are keeping more gold reserves. Having exposure to both assets hedges against stock market downturns. Where one falters, the other might excel, ensuring returns through dividends and price appreciation.
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