I have 2 stocks and will buy more in case they go down

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Like it or not, we could head into bear market territory. This is not fun. In fact, it is very stressful. But for those of us who can keep our cool and act strategically, a bear market is actually a gift. When all stocks go down, even good stocks get hurt. Herein lies the opportunity. Today, I am going to explore two Canadian stocks to buy as their prices fall.

bear market gift

A bear market occurs when “stocks are dropping 20% ​​or more from recent highs amid widespread pessimism and negative investor sentiment.”

Just as all stocks seem to go up in a bull market, all stocks seem to go down in a bear market – even good ones. Emotions take over, and there is often a lack of real analysis. When optimism is the dominant sentiment, bad companies often rise. Likewise, when pessimism spreads, good companies can fall out. The common denominator here is that stocks move more on sentiment than anything else. When feelings escalate, they often overshadow certain basics.

Higher interest rates will negatively affect most, if not all, companies. However, from a long-term perspective, companies with strong fundamentals will often experience a bear market as a temporary, meaningless picture. Let’s take a look at 2008 to give us some perspective. In 2008, TSX It’s down nearly 50% from May 2008 to March 2009. While some companies haven’t made it through, others have become a great buying opportunity.

BC Stock: Storm Resist

I currently own BCE . Company. (TSX: BCE) (NYSE: BCE) for its leadership position as Canada’s largest telecommunications company. It is a protected business with high barriers to entry. It is also a defensive business that generates massive amounts of cash flow every year. In 2021, BCE reported more than $3 billion in free cash flow. Last quarter, free cash flow was $1.3 billion, up 7% from a year ago. I also own BCE stock for a 6% dividend yield.

Stocks to buy BCE tsx shares

BCE stock is down 16% in TSX from its April highs. He must have fallen into the midst of negative emotions. It’s also pricing in higher interest rates. Since the company has a large amount of debt, the higher interest rates will certainly affect the profitability of BCE in the future. The question is, how far will BCE stock fall? When do we step in and grab this top stock?

Well, in my view, I think we can reasonably buy this Canadian stock right now for the 6% dividend yield alone. But I will wait for the market and BCE stock to drop a bit more. At that point, I will be buying more of these defensive flexible stocks. Because when the dust settles, the BCE will bounce back.

Tourmaline deposits: Supported by global demand for natural gas

Tourmaline Oil Foundation. (TSX: TOU) is a Canadian mid-level natural gas producer – Canada’s largest natural gas producer. It’s on my list of Canadian stocks to buy for a few simple reasons. First, tourmaline is very much a proxy for natural gas prices – and the outlook for these prices is promising. Simply put, natural gas has become the fuel of choice locally and globally, as the world shifts away from coal. North American natural gas is the best – reliable, low-cost and relatively clean.

Natural gas prices have risen dramatically in the past few years. This is especially true of liquefied natural gas (LNG) prices in the United States. This leads me to my second reason to buy tourmaline if it drops more.

Bear market for Canadian stocks to buy

Tourmaline is becoming an increasingly global player and is diversifying its exposure to natural gas pricing. For example, the company signed a 15-year contract with Cheniere Energy Inc. (NYSE: LNG), the world’s largest exporter of liquefied natural gas. Under the agreement, Tourmaline will supply Cheener with 140,000 million British thermal units (MMBtu) for the Corpus Christi Phase 3 project.

This will start in early 2023, adding significant cash flow to the already booming cash flow profile. Last quarter, Tourmaline reported operating cash flow of $1.35 billion. This was 137% higher than last year. Given its recent stellar performance and plenty of exciting future growth prospects, Terms of Use is definitely one to add to your watchlist.

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