The previous three years (together with 2025) have been unimaginable for fairness buyers. After markets bottomed in 2022, the following good points have positively benefited buyers all all over the world (with only a few exceptions) who’ve stayed invested by way of the latest volatility.
And whereas there are many voices on Wall Road and elsewhere who proceed to tout 2026 as a probable extension of this ongoing bull market, the truth is that some cracks are displaying beneath the floor. Whether or not we’re speaking about geopolitical considerations, shifting commerce insurance policies, or slowing job progress in main economies all over the world, some indicators are pointing to a possible bear market beginning in 2026.
For these seeking to defend their portfolios from such dangers, listed below are three concepts for handle by way of a doubtlessly unstable 12 months.
Hydro One
Basically, I’m very bullish on the utilities sector as one that may not solely survive but in addition thrive in a market downturn. Hydro One (TSX:H) is one technique to play such tendencies within the Canadian market.
Centered on the Jap Canadian provinces, Hydro One has seen stable progress lately. Its steadiness sheet stays strong, and with a present yield of two.5% (introduced decrease by robust capital appreciation lately), it is a dividend inventory that’s beginning to appear to be a progress inventory.
Don’t get me unsuitable, I believe Hydro One nonetheless possible has loads of progress potential. That’s partly as a result of I believe Jap Canada may very well be the place many knowledge centres are in the end constructed, offering a way more strong income and earnings progress trajectory for the corporate over time.
But it surely’s this firm’s final money move stability and dividend progress profile that stand out to me as causes to personal this inventory long run. On any significant dips in 2026, I believe Hydro One inventory is a screaming purchase.
Alimentation Couche-Tard
One other defensive inventory I’ve touted as a price play prior to now, Alimentation Couche-Tard (TSX:ATD) seems well-positioned to trip any damaging bear market headwinds towards highs.
If capital begins to rotate into extra defensive areas of the financial system, I believe there’s a case to be made that owing Couche-Tard inventory right here is smart. In any case, demand for fuel stations and comfort retailer purchases received’t meaningfully decline in downturns. We’ve seen how these dynamics have performed out prior to now.
With a dividend yield of 1.2% and a ahead price-earnings ratio of simply 18 occasions, I nonetheless suppose ATD inventory is affordable right here, even after its rise lately.
Enbridge
One other firm with a enterprise mannequin that has little to do with the overarching macro backdrop is Enbridge (TSX:ENB).
Shares of this main North American pipeline firm have been on a tear lately, surging towards a degree that’s approaching its all-time excessive again when oil costs spiked within the mid-2010s.
That’s spectacular, since that was the final time curiosity round pipeline progress was distinguished. Right this moment, a lot of those self same tailwinds are at play as soon as once more.
Thus, from a dividend perspective (a powerful 6% yield is cause sufficient to personal this inventory) to its progress tailwinds, I believe it is a inventory that may develop by way of any near-term market turmoil we may even see within the 12 months to return.
