Generation Y: what to buy before the rebound


It has been a scary few months for Canadians. After more than a decade of strong economic growth, 2020 did not wait long before sinking into the positive feelings we had for the New Year. A virus has appeared, putting our finances at risk in many cases. Millennials in particular have been particularly hard hit as many of us lack the job security that our parents and peers above us could have and are in fact likely to be part of the economy of concerts.

Some of these finances are probably tied to stocks – and it was a terrifying journey for investors. the S & P / TSX composite fell nearly 40% from peak to trough as the world struggled with more and more bad news. However, it now looks like there may be light on the horizon.

After a free fall in the past month, it looks like things could really change for Canadian stocks. At the time of writing, the TSX is up about 16% from its lowest point this year. While it is not something to shout about, it is a chance for investors to enter if they believe the worst is over.

For millennials, this may be the best time to use the money you have to spend on buying and holding stocks for the long term. If this is something you are willing to consider, I would absolutely watch these safe bets first.

Millennials can bank

Canada’s banks have ranked among the best in the world during the last recession, and analysts believe that once the housing crisis and housing slowdown occurs, banks will return to the top.

A stock like Toronto-Dominion Bank (TSX: TD) (NYSE: TD) is the perfect option right now, as it has current and future potential for millennials wanting to buy and hold.

Although TD Bank is already the second largest bank in Canada in terms of market capitalization, it is still in growth mode. The bank recently expanded into the United States, where it is now one of the top 10 banks in the country.

Much remains to be done in the United States and in the wealth and commercial sector, where there is a lot of money to be made.

The stock currently has an increase of around 43% at the time of writing, with a dividend yield of 5.28% which will only be available for a short time once the market rebounds.

Use utilities

No matter what happens in the economy, Canadians will continue to need electricity. That’s why a company like Fortis Inc. (TSX: FTS) (NYSE: FTS) is the perfect buy.

After the initial shock, investors quickly learned that this company’s profits would remain stable, so Millennial investors would have to buy these shares before returning to prices before the crash.

Honestly, even today, it’s not really a deal. The stock is barely 8% below its fair value price, but analysts believe the stock should continue to grow above $ 60 per share in no time. This is a potential of 20% writing.

What millennial investors can expect from this company in the future are its acquisition plans. The business is growing steadily through acquisitions, with constant revenue expected to grow as the business takes on new business. Analysts say the company could increase profits by 6.5% a year.

Energized with energy

There are a lot of pipeline companies, but TC Energy Corp. (TSX: TRP) (NYSE: TRP) is one of the most exciting. Indeed, while other companies have already made a lot of growth, TC Energy has $ 38 billion in future secure projects ready to start.

The company’s Keystone XL pipeline alone will generate a ton of cash for investors. This alone should be completed by 2023.

Pipelines like these should help end the North American oil and gas gut and get the oil moving. This should push up the price of oil and make TC Energy a super stock in the future.

Millennials who want to buy and hold this stock will still get it for a flight, but may not be as much off as their peers. Still, the stock still has upside potential of 20% to fair value and could go up 40% over the next year.

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