Canadian investors looking to put their 2024 (Tax-Free Savings Account) contribution to work have many options as we head into the fourth and final quarter of this year. Undoubtedly, it’s been a pretty solid year for markets thus far. And though there’s been no shortage of market volatility (especially in the corners of the semiconductor scene), I still think investors should be ready to keep rolling forward.
With the TSX Index close to a new high, investors should look to some of the less-appreciated, cheaper names if they’re looking to take a sizeable stake in a firm for the next four to six years. Undoubtedly, falling rates and the artificial intelligence (AI) boom make for a rather interesting macro climate — one that may still be discounted by investors. Of course, economies tend to take a heavy shot to the chin whenever the rate hikes come in fast.
While things could be different this time as inflation tanks while central banks do their best to preserve the economy, one must always concentrate on evaluating individual names. Paying too much attention to the macro forecasts can undoubtedly have its drawbacks. For one, almost everybody on Wall or Bay Street is already fully aware of the road ahead.
By the time new bits of economic data come to light, the stock markets (and bond markets) have likely already reacted, giving you little to no edge over most other market participants. The good news is you don’t need to be a seasoned economist to do incredible things .