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It hasn’t been easy keeping up with the sentiment in the stock market this year. All the short-term uncertainty surrounding the economy has led to an extremely volatile year for stock market investors.
The S&P/TSX Composite Index is sitting at a loss of more than 10% year to date after a gradual decline over the past six months.
Short-term investors looking to make a quick buck in the stock market have their work cut out for them. It’s hard enough to time the market in the calmest of conditions, let alone when it’s as volatile as it is right now.
Long-term investors, however, don’t need to be nearly as concerned with the market’s volatility. In fact, now is a very opportunistic time to put money into the stock market if you’ve got a time horizon of 10 years or longer.
With that in mind, I’ve put together a list of three companies that you can feel good about buying regardless of the market’s condition. Through thick and thin, these are three TSX stocks that you can rely on over the long term.
Brookfield Asset Management
If I had to pick one TSX stock to build a portfolio around, Brookfield Asset Management (TSX:BAM.A) would be near the top of my list.
The company’s impressive market-beating growth track record is certainly one of the reasons why. The stock has been a consistent market beater for years, and there’s no reason to believe why that would change anytime soon.
Diversification, though, is what makes Brookfield Asset Management such a solid company to own. As a global asset management company, the company has exposure to a range of different industries spread across the globe.
If you feel that your portfolio is too heavily skewed towards one area of the market, I’d strongly consider starting a position in this top company.
There haven’t been many more dependable stocks than the major Canadian banks in recent decades. Growth investors may not be overly interested in the Big Five, but that doesn’t mean they don’t belong in a well-diversified portfolio.
At a market cap of $150 billion, Toronto-Dominion Bank (TSX:TD) is the second largest of the Big Five. The bank boasts an international presence, with the U.S. expected as being a major growth driver in the coming years.
If the volatility has been too painful for you this year, I’d urge you to think about adding a dependable and high-yielding dividend stock like TD Bank to your portfolio.
Last on my list is Constellation Software (TSX:CSU) — the pick that growth investors have been waiting for.
Unsurprisingly, the growth stock is down this year, as the tech sector as a whole has taken a beating in 2022. But with shares down about 20% year to date, Constellation Software is far better off than many other high-growth tech stocks on the TSX this year.
As the business has continued to mature, growth has understandably slowed. But over the past five years, the tech stock has returned close to 150%. In comparison, the Canadian stock market is up less than 20%.
Constellation Software will likely be more of a volatile ride than the first two picks on my list. But if you’re looking to add some market-beating growth potential to your portfolio, this has to potential to continue being an excellent long-term hold.
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