1 Top TSX Utility Stock to Own as Markets Tank

Fortis (TSX:FTS)(NYSE:FTS) stock is a safe-haven blue chip on the TSX that can help you wealth the storm, as the broader stock markets fall.

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The market correction could evolve into a market crash, with tech stocks leading the charge. Undoubtedly, the Nasdaq finds itself hitting an ominous milestone, now down 20% from peak to trough. Indeed, the loud roar of the bear is heard by many, and such tech investors are running for the hills.

What’s most concerning is that big tech, the foundation holding up the American market, has shown prominent cracks. Still, I believe that any such profitable companies being dragged down by the current multi-layered crisis (COVID, the Ukraine-Russia war, inflation, fighting the Fed) are still worth a second look, as they follow in the footsteps of almost everything else (except commodities perhaps) further and further into the abyss.

Nasdaq: The bear has entered the lobby

The TSX Index has held its own remarkably well. After years of falling short of the S&P 500 and Nasdaq 100, the TSX is finally getting its moment to shine, thanks to financials, materials, and energy stocks. Indeed, there’s a lot to love about the previously unloved TSX. Though it’s not as diversified as I’d like, I still think it holds many of the key drivers of outperformance in a year that’s seen the tables turn very violently.

As for tech stocks, I have no idea when they’ll bottom. Nobody does. Just look at the recent lowering of the S&P 500 price targets by the big financial institutions. They’ve slashed their 2022 targets considerably. But they’re to be taken with a grain of salt. It’s so convenient to lower a price target after a substantial decline is already in! Furthermore, I believe that such drastic price target drops give such institutions far less credibility.

Don’t be fearful, as banks lower the bar on the S&P 500

Of course, there are firms like Morgan Stanley that already saw the pain ahead. But regardless, nobody really knows where the markets are headed next over the near term. There will always be bulls and bears, geniuses and fools (that’s a lower-case f). So, don’t spend too much of your time buying into any random firm’s year-ahead outlook. It’s uncertain, and who knows? We may very well see the same firms upgrading their S&P 500 price targets after the fact once there’s already been a big rally.

My takeaway? Be ready for whatever happens next. Things can get uglier, but they could also get better. In any case, I believe it’s the new investors who’ve overweighted momentum and tech that need to bring their TFSAs and RRSPs back into balance with value and safety names.

Consider Fortis (TSX:FTS)(NYSE:FTS).

Fortis

Fortis is a boring stock that really looks attractive during times like these days. While higher rates will nibble into profitability, they won’t leave a massive dent in the share price, as was the case with most high-growth tech stocks these days. As a boring retiree stocks, Fortis is a great bond proxy at a time when bonds are arguably no longer worth hoarding in the face of fear.

It’s a risk-on year, so risk-off plays like Fortis are a great way to “stay” rich through trying times. While a market crash could still lead to potentially sizeable losses, I’d argue that it’s far more likely to dampen such downside, given its resilient operating cash flow stream and steady dividend.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette owns FORTIS INC. The Motley Fool recommends FORTIS INC.

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