The S&P/TSX Composite Index hit new record highs earlier this year, reaching unprecedented heights amid heightened market volatility across global stock markets. However, it has not been smooth sailing for stock market investors this year. The benchmark index for the Canadian stock market has been on a roller coaster, moving based on the changing geopolitical situation.
Investors are constantly hoping that the US might figure out a proper diplomatic solution to the self-created problem in the Middle East after it attacked Iran during negotiations. A return to global oil supply normalcy is what everyone is hoping for, but it remains to be seen when that might happen.
As of this writing, the main Canadian stock market index is down by 1.7% from its all-time high. The only good thing about the market volatility is the buying opportunities it has opened up for investors. If you have $1,000 to put to work in the market, here are two reasonably discounted TSX stocks you can consider adding to your self-directed investment portfolio.
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Dollarama
Dollarama Inc. (TSX: DOL) is a stock perfect for such market conditions. When inflation rises and things get ridiculously expensive, people look to cut costs however they can. Dollarama is a $46.5 billion market capitalization giant in the Canadian retail space. The company owns and operates Canada’s largest chain of discounted retail stores, selling various everyday items and merchandise at low and fixed price points.
When people want to save money, they turn to businesses like Dollarama. The business model also works well when people have more buying power. The stock felt like it had been overbought and was due for a correction. As of this writing, it trades for $170.51 per share, down by 18.8% from its 52-week high, it is too attractively priced to ignore for your self-directed portfolio right now.
Jamieson Wellness
Jamieson Wellness Inc. (TSX: JWEL) is another TSX growth stock that can thrive in markets like this. More of a long-term investment, the $1.4 billion market cap company manufactures, distributes, and markets branded natural health products. Since the pandemic, people have become increasingly health-conscious, and the kind of products it offers has been in high demand for several years.
It is considered one of the best-known health and wellness brands in the country. The tailwinds in this industry can support solid demand in the long run and offer a lengthy growth runway for the stock. As of this writing, Jamieson Wellness stock trades for $34.14 per share, down by 13.1% from its 52-week high. It can be a good investment to consider buying on the dip.
Foolish takeaway
A $1,000 split evenly between DOL stock and JWEL stock can be a smart way to approach investing in the current market environment. It gives you exposure to two TSX stocks with defensive business models and plenty of room to grow in the long run. Allocating some room in a Tax-Free Savings Account (TFSA) to hold shares of these two stocks can be an excellent way to capture outsized long-term gains without incurring taxes.
