It’s hard to tell what the strategy for one’s TFSA should be for the rest of the year. Personally, I think the choppy first quarter and ongoing geopolitical uncertainties should not cause investors to alter their portfolios in a major way, especially if the portfolio was completely fine (well-diversified and positioned in great value names) going into 2026.
If, however, you were all-in on one sector (let’s say tech) or you were to heavily exposed to the domestic market (maybe you owned just a TSX Index ETF), perhaps it could make sense to reassess and re-formulate the game plan, not just for 2026, but for the next three to five years. Preferably, positioning your TFSA for the next 10 to 15 years could be the move, provided you’ve got the time horizon and the patience to hang on through all the ups and downs that we will be dealt on the market roller-coaster ride.
Personally, I’m not in a rush to make any rash decisions in response to the choppiness we’ve experienced this year. Whether it’s the AI disruption fears or the conflict in Iran, I do think worrying about what the market has already had ample time to worry about will do no favours to your portfolio.
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AI could be a major theme for 2026 and beyond
At this juncture, the AI boom stands out both as a major opportunity and a risk to complacent firms that aren’t investing in the technology or adapting to the agentic era. Indeed, complacency could come with severe penalties as the transformative technology sweeps through, narrowing moats and, in some cases, eliminating them entirely.
Of course, understanding the technology and the wave of risks (as well as opportunities) will require some extra due diligence on the part of investors. More studying and monitoring of the basket of names within the core of your TFSA seems like a must. In any case, I would take advantage of any dips in the road, and as certain names stop participating in the broader market rally, I’d look to potentially go against the grain for a shot at extra value.
Indeed, when there’s a disruptive technology thrown into the equation, it can be hard to understand what the implications on the market and individual companies will be. There’s going to be a lot of misunderstanding in the coming weeks and months, maybe even years. And for investors who know how to spot the deals and steer clear of the traps, I do think there’s an opportunity to do quite well over the long run.
What’s underrated amid the AI boom?
Personally, I think the steady Eddie names, like the boring utilities and the cash-rich pipelines, are the defensive plays that could become quite a bit more exciting. Consider TC Energy (TSX:TRP) and its gas pipelines, which have always been essential to getting the energy from point A to B. With the rise of AI data centres, the natural gas pipelines suddenly became pieces of infrastructure that were absolutely critical.
It’s no longer just a steady utility provider, but one of the backbones of the agentic economy. As new projects come online and demand for natural gas heads into overdrive, I think there’s an opportunity for TC Energy to really step up to the plate for a big swing.
With the debt coming down and a massive runway for growth driven by AI tailwinds, it’s underrated names like TC Energy that I’d look to consider. There’s a nice 4.3% yield and a modest 24 times trailing price-to-earnings (P/E) on the shares right here.
