2 cheap Canadian stocks to buy today, even as we head into a recession

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Despite growing fears of a recession, the Canadian and US stock markets are currently showing strong upward momentum. The S&P/TSX Composite Index ended last week up more than 3%, and the American company S&P500 exceeded 4% growth during the week.

All of these gains stem from what I would have assumed was a loss-filled week. The United States announced another interest rate hike, with an increase of 0.75 percentage points. That being said, I would say that this increase was widely expected by investors.

What really surprised me was the reaction of the stock market to the announcement of the second consecutive quarter of slowing growth in the American economy. Again, many investors may have been expecting this news when it was released last week. However, further confirmation that the US, and possibly also Canada, is already in a recession would have me thinking that at least a slight sell-off in the stock market would have been triggered.

Recession or not, I’m still investing

All this to say that now is definitely not the time for long-term investors to sell their positions. In fact, now would be a good time to stock up on top Canadian stocks. And after the good performance of the stock market last week, Canadian investors may want to act quickly.

The saying goes that investors hate uncertainty. Uncertainty is a major catalyst for stock market volatility, which investors have had no shortage of over the past year. However, I would say there is more certainty in the market today than some people realize.

In addition to rising interest rates and inflation, there is also the very real possibility that we are already in a recession. While this is certainly not good news to hear if you are an investor, you could argue that much of this negative outlook is already priced into the market.

The market’s performance over the past week gives investors a glimmer of hope. I wouldn’t bet on a slowdown in volatility just yet, but I also don’t think there will be as much selling as many investors might hope for in the last five months of the year.

Two Canadian stocks investors should act on quickly

At the top of my watch list are currently two stocks that are beating the market and still trading at opportunistic discounts.

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is a global renewable energy provider, offering its global customers a range of different green energy solutions.

The demand for renewable energy is only increasing, which is why I am already a shareholder of this large energy company.

Equities are positive on the year, but still down from all-time highs set at the start of 2021.

If you’re optimistic about the long-term growth potential of renewables, this company should be on your radar.

Constellation Software (TSX:CSU) is a tech stock I’ve had on my watchlist for a while.

The company has been quietly outperforming the returns of the broader Canadian stock market for more than a decade. Growth has slowed in recent years, but there is still plenty of above-market growth in the tank.

Shares have jumped nearly 15% in the past month, but the tech stock is still down year-on-year.

It’s a perfect choice for any long-term investor looking for an affordable growth stock in the high-flying tech sector.

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