It’s hard to know what’s ready to rise until there’s already some momentum in the books. Even then, it’s hard to know when the peak will be and when things will start to reverse course. That’s what makes bottom-fishing and momentum investing so risky, especially for new traders who think it’s so easy to buy low and sell high, as they wind up buying high and selling low.
Either way, I think long-term investing is the way that new investors can gain the upper hand. The longer your timeframe, the less you’ll be worried about the day-to-day moves because, at the end of the day, it’s emotions and your behaviour that can get in the way of a solid portfolio that’s set to rise over the extremely long term. Sure, everyone wants a quick gain, but the big question for investors is: Are you prepared to pay the high price that is elevated risk?
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What’s ready to rise in 2026? I’m not sure, but it’s the names poised to ascend by 2036 that should excite investors!
Indeed, it’s easy to overestimate your risk tolerance as a new investor. But for those who genuinely can handle the turbulence and are willing to look incredibly wrong over the near term, going for the heated names can make sense, provided you think there’s still value to be had that the rest of the market is missing. It’s not easy to spot pricing discrepancies in stocks. But if you can do it only a handful of times, you could do very well over time.
In any case, I think channelling the great Warren Buffett is a good way to go. Don’t try to strike it rich with a roll of the dice in a speculative stock. Instead, try to play the game where the odds might be slightly in your favour. In other words, try to find opportunities to get more for less so that you don’t wind up holding the bag in pursuit of fast riches. In other words, don’t try to get rich quickly; aim to stay rich while building your wealth over time.
Alimentation Couche-Tard
One Canadian stock that I think is overdue for a bounce is Alimentation Couche-Tard (TSX: ATD). The stock has been super-volatile of late and less than rewarding over the past two years. The energy shock from the Iran war and a lack of new news are likely contributors to the latest wave of choppiness. Personally, I think the fundamentals are as good as ever, especially as some investors, perhaps those trading the stock ahead of M&A news (a deal will come eventually), grow impatient and move on.
At the end of the day, Couche-Tard is the king of synergy in the convenience retail space. It’s no mystery as to why many of its deal announcements are actual drivers of the stock, even though acquisition announcements tend to pressure share prices, at least on average. In any case, Couche-Tard’s managers don’t make deals unless they can score a sum of three by adding two pieces together.
For now, I think Couche-Tard is elephant hunting. It’ll be quiet until the right time to pounce. Beyond 7-Eleven, there are many potential turns the firm could make, and when it does, expect ATD stock to be timely again. In the meantime, I’d be happy with the generous capital returns program as well as a well-thought-out strategic plan that aims to beef up the firm’s fresh-food presence at local Circle K stores.
