It’s an interesting time in the markets right now. With countries on the verge of a recession, investors are looking for opportunities to buy up stocks on the cheap, allowing investors to pick up some fairly high-quality stocks at bargain basement prices.
But there are also other strategies you might want to consider. For instance, there are other high-quality stocks that should rise incredibly once the looming recession passes.
In this case, if you’re looking for some buy-and-hold options, but also want some extra cash on hand, there are a few buy-and-sell stocks out there that should skyrocket over the next year.
Let’s look at a few options.
Brookfield Brookfield Asset Management Inc. (TSX:BAM.A) is an excellent stock if you’re looking to buy and hold for the long term. The stock has a solid history growth, with the last major fall during the last recession, which means buying on its next dip could bring huge returns for investors.
Since the last recession, shares have increased by almost 550% as of writing. That would bring an investment of $10,000 to $64,265.76 in just a decade! As well, it looks like Brookfield is set up to continue this growth for the foreseeable future.
The company invests in assets, mainly within the infrastructure space ranging in everything from real estate to renewable energy. This has given it a diverse portfolio, with an increase in revenue of US$12.1 billion in 2009 to US$56.7 billion in 2018. Needless to say, this stock is a great option to diversify your own portfolio, though I would wait for a dip.
Fortis An excellent stock to invest in ahead of a recession is Fortis Inc. (TSX:FTS)(NYSE:FTS). The utilities industry offers investors a space that the recession can’t touch. People need heat, light, and water, and Fortis has proven that they’ll continue to needs these necessities even during major downward trends in the market, with shares increasing about 130% in the last decade.
In fact, Fortis is currently in growth mode, increasing sales over the last few years through inorganic growth by growing through acquisitions throughout the United States. Meanwhile, its sales have increased fantastically from US$6.84 billion in 2016 to US$8.39 billion in 2018. Analysts expect this to continue to US$9 billion in 2019, just in time for investors to get in before the recession hits.
Enbridge Finally, we have Enbridge Inc. (TSX:ENB)(NYSE:ENB), a stock that has been hit unnecessarily hard by the markets due to the oil and gas industry, an incoming recession, and some short-term issues. This has created a fantastic opportunity for stellar short-term growth for the investor willing to get in now.
Enbridge has trended further and further down below its fair value price of around $60 per share, with a potential upside of 35% as of writing.
Investors just haven’t been convinced, however, as the oil and gas industry needs to rebound, and the company had two major setbacks that left them shaken. First there was the delay on its Line 3 pipeline, and then an explosion that tragically left one person dead.
But in the next year, things should really turn around. The recession will pass, the oil and gas industry will rebound, and its pipelines will come online by 2021. Even if they just started building a few, shares should really skyrocket with any type of rebound, which could make this a great investment for those wanting to hold on for a year or two.
Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC. The Motley Fool owns shares of BROOKFIELD ASSET MANAGEMENT INC. CL.A LV and Enbridge. Enbridge is a recommendation of Stock Advisor Canada.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019