4 of the best Canadian stocks to buy while the market is selling

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The Canadian stock market has shown signs of life lately, but there is still a big hill to climb back into positive territory. The S&P/TSX Composite Index jumped 2% last week, but the index is still trading at a loss of around 10% on the year.

Unfortunately, for bulls, at least, there may be more short-term pain. There is enough uncertainty in the broader economy to cause more volatility in the stock market over the next few months.

Long-term investors, however, need not worry so much. Instead, as a long-term investor myself, my goal today is to take advantage of the generous buying opportunities in the market.

Here are four Canadian stocks at the top of my watch list right now.

Brookfield Asset Management

There’s never a bad time to stock up on this Canadian stock. Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) offers investors a rare blend of broad diversification and above-market growth potential.

The $100 billion asset management company is as close to an index fund as you’ll find on the TSX. Brookfield Asset Management has clients spread across the globe, spanning a range of different industries.

Over the past five years, stocks have risen just under 100%. That’s good enough to nearly triple the returns of the Canadian stock market as a whole.


It’s hard to ignore Shopify (TSX:SHOP)(NYSE:SHOP) at these price levels. As a current shareholder, I have already added to my position more than once this year and it may not be done yet.

After an incredible first four years on the Toronto Stock Exchange, valuation may have finally caught up with the growth stock. The shares have fallen almost 70% since the start of the year, alongside many other growth stocks.

There is no doubt in my mind that the tech giant will return to outperform the market. It may take some time for the market to recover, but long-term investors shouldn’t wait too long if they’re looking to take advantage of this fantastic buying opportunity.

Descartes systems

Descartes systems (TSX:DSG)(NASDAQ:DSGX) is another tech stock feeling the effects of the market selloff this year. Despite the stock’s return to nearly 200% growth over the past five years, stocks are down 10% year-to-date.

The company is a Canadian leader in the logistics and supply chain management industry. It offers its customers a range of different cloud-based solutions, the demand for which I bet will only continue to increase over the next decade.

The tech stock is up nearly 20% since early May. Similar to Shopify, I strongly suggest you act fast if you’re considering starting a position.

Algonquin power

To balance out the two high-growth tech stocks on this list, I have a reliable utility company.

Algonquin power (TSX:AQN)(NYSE:AQN) is the perfect stock to hold during a bear market. The company can provide a portfolio with the protection it needs to withstand difficult market conditions. On top of that, utility stock can provide investors with a steady stream of passive income.

At current stock prices, Algonquin Power’s annual dividend of $0.95 per share yields just 5.5%.

If your portfolio favors high-risk growth stocks, this is a company you want to own, especially in today’s unpredictable market conditions.

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