We’re barely one quarter into another year of investing in the stock market, and the stock market has already seen one of the bumpiest years it has had in a while. Global markets have become incredibly volatile this year, especially with the US and Israel initiating a war against Iran and the subsequent closure of the Strait of Hormuz.
The consequence of these developments has been a significant rise in volatility across global markets. As of this writing, the S&P/TSX Composite Index, which reflects the performance of the Canadian stock market, is down by almost 4% from its all-time high. Bear markets might not seem like the best time to invest, but those with a long-term investment horizon treat these as excellent opportunities to do so.
Buying when others are selling is a classic strategy for stock market investors to use the market downturn to their advantage. When bearish conditions hit, even the most reliable TSX stocks can see prices decline to more attractive levels. When the dust settles, these stocks can deliver outsized gains compared to the rest of the market.
With 2026 gearing up to be full of market volatility, here are two TSX stocks I would advise investing in to make the most of stock market investing this year.
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Fortis
Fortis Inc. (TSX:FTS) is the pillar of stability that many Canadian investors look to when markets are flailing here and there. The $40 billion market-cap company is a giant in the utility sector. It owns and operates several natural gas and electricity utility businesses across Canada, the US, and the Caribbean. Fortis generates almost its entire revenue through long-term contracted assets in rate-regulated markets. It means the cash flow is largely predictable.
To add to its defensive qualities, the business provides an essential service. When people look to cut costs, their utilities are not the last things they consider canceling. This allows Fortis to generate revenue even during the worst economic conditions. The business model has been successful, and the company has the kind of economic power to fund and grow its dividends. Boasting an over 50-year streak of dividend growth, it can be an excellent investment to consider.
Alimentation Couche-Tard
Alimentation Couche-Tard Inc. (TSX:ATD) is another excellent pick to consider for defensiveness in your portfolio. The $73 billion market-cap Canadian company is a multinational operator of convenience stores, with over 16,000 locations across North America, Europe, and several Asian markets. The convenience store company also operates gas stations that bring in a lot of revenue from the energy sector as well.
ATD has fared well during bear markets in the past due to how in-demand its products are. Besides the gasoline it sells, it also has cigarettes, alcohol, and lottery tickets among its wares. The sale of these products tends to do well in harsh economic environments. The company’s disciplined approach to growth over the years and its minimal debt load position it for a solid year on the stock market. If I had to choose one stock to invest in for shoring up my self-directed portfolio, ATD would definitely be a strong contender.
Foolish takeaway
Doing well as a stock market investor doesn’t always mean making massive profits. Sometimes, you have to be happy with having a portfolio that can resist market turbulence and offer solid long-term growth. To this end, Fortis stock and Alimentation Couche-Tard stock can be some of the best investments to buy and hold in your self-directed portfolio for the long run.
