With the war in the Middle East continuing to create uncertainty, it can feel like finding the best stocks to buy right now is more important than ever.
Markets don’t like uncertainty, and that’s exactly what we’re seeing today. But that doesn’t mean you should overreact.
In fact, one of the biggest mistakes that investors make in environments like this is trying to make drastic changes to their portfolio based on short-term headlines. Because if the situation improves sooner than expected, those decisions can quickly backfire.
At the same time, doing nothing isn’t always the right move either. Even if you’re confident in your long-term portfolio, there can still be opportunities to take advantage of stocks that have sold off.
So, the key is finding the right balance and determining what moves suit your portfolio best. That means looking at your current holdings, considering your risk tolerance and your long-term goals, and then deciding if there’s anything worth adding, without overreacting to the noise.
And regardless of the environment, the most important factor is always ensuring that you’re buying the high-quality businesses with strong, reliable operations.
So, with that in mind, if you’ve got cash on the sidelines, here are a few of the best stocks to buy right now.
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One of the best stocks to buy to gain exposure to energy
It’s no surprise that energy stocks have already seen a significant move higher as oil prices have surged. But one high-quality energy stock that still trades at a compelling valuation is Freehold Royalties (TSX:FRU), which could be one of the best energy stocks to buy right now.
Unlike traditional producers, Freehold operates a royalty model, meaning it collects a percentage of production revenue without actually drilling wells itself.
That makes it less volatile than most energy stocks and a much more reliable way to gain exposure to the sector. It also allows Freehold to pay a highly sustainable dividend with a current yield of roughly 6.2%.
In the near term, it won’t see as much of an operational impact. Higher oil prices mean higher royalty revenue, but producers will see a more significant impact on their margins initially.
However, Freehold’s long-term upside could be compelling. If elevated prices lead to more drilling or increased production, Freehold benefits without having to spend any capital.
So, if you want energy exposure without taking on as much risk, Freehold is one of the best options to consider.
A defensive stock to add stability
If the conflict drags on and energy prices remain elevated, the risk of a broader economic slowdown increases. So, if you’re looking for stability, one of the best defensive stocks you can buy on the TSX is Fortis (TSX:FTS).
Fortis operates regulated utility assets, providing essential services like electricity and natural gas to millions of customers, which is why it’s so reliable.
People need these services regardless of what’s happening in the economy, which means Fortis generates highly predictable cash flow.
On top of that, it has one of the best dividend track records in Canada, increasing its payout annually for more than five decades.
So, while it may not offer massive growth, it provides stability, reliable income, and consistent long-term growth, which is exactly why it’s one of the best stocks to buy in these environments.
A simple way to take advantage of a broader selloff
Finally, if you’re already happy with your portfolio and feel well diversified, you don’t necessarily need to make any major changes.
However, that also doesn’t mean you should ignore the opportunities that the market creates for long-term investors.
Stocks have already started selling off. In fact, the Dow Jones entered correction territory last week. And depending on how long this situation lasts, they could fall further.
And while events like this can hurt businesses in the short term, high-quality companies have consistently shown that they can recover and continue growing over time. That’s why adding exposure to an index ETF can make a lot of sense.
For example, BMO Dow Jones Industrial Average Hedged to CAD Index ETF (TSX:ZDJ) gives you exposure to some of the largest and most established companies in the world.
These are businesses with strong balance sheets, global operations, and long track records of navigating economic uncertainty.
So, if you’re looking to take advantage of the recent pullback, the ZDJ is easily one of the best ETFs on the stock market to buy right now.
