Following a prosperous two years in which the TSX Composite gained more than 30%, the S&P 500 gained 50%, and the Dow gained more than 60%, the party came to a crashing halt last month.
Not many investors were spared, and most may have found themselves caught off guard by the results given the euphoria in the weeks and months leading up to the plunge — including historic speculation on Bitcoin and cryptocurrencies and the emerging acceptance of a newly minted recreational marijuana market.
A lot of people’s reactions when something like this happens is to turn a blind eye to the markets, simply waiting until the sense of panic disappears.
If this sounds anything like you, you may want to consider adding the following three stocks to your portfolio, so you won’t bat an eye the next time something similar happens again.
Goldcorp Inc. (TSX:G)(NYSE:GG)
For more than 5,000 years, societies have flocked to gold as a store of value in times of crises.
This can be a useful strategy when investors become fearful about the creditworthiness of financial institutions or fearful as to the creditworthiness of sovereign governments.
Additionally, gold is often looked to by many as a good hedge against inflation when central banks take part in monetary stimulus — effectively diluting the value of their fiat currencies. Meanwhile, the value of gold is finite and in scarce supply.
Granted, in light of the rise of cryptocurrencies, many have been making these same arguments in favour of Bitcoin and other blockchain technologies.
Making that theory even more palatable is that in a recent investor presentation, Goldcorp hinted that it may soon be entering the crypto market — a hedge on an existing hedge, if you will.
As the largest gold miner in the world, you should have nothing to worry about with an investment in Goldcorp’s shares.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD)
Much of a bank’s business is driven by interest rates, as they are directly tied to the rate that the bank charges customers on money they borrow.
With rates now on the rise, this bodes well for TD’s short-term outlook.
Yet even if things were to suddenly take a turn for the worse and rates were to fall, TD holds the advantage of being one of the largest retail branch networks in North America.
Retail accounts are largely “sticky” — meaning a bank’s customers are unlikely to switch for another competitor. TD will fare better than most, even in a difficult environment.
Saputo Inc. (TSX:SAP)
Saputo is Canada’s leading dairy producer and one of the largest dairy processors not only in Canada, but also in the United States and Australia thanks to recent acquisitions.
Dairy products — milk, cheese and creams — are staples of our daily lives, meaning that even when consumers are tightening their purse strings in a recession environment, it won’t have much of an effect on Saputo’s sales and profits.
