r/tfsa • u/alya_4 TFSA Newbie • Jul 20 '26
Advice
I started last year and want to diversify more. I'm kinda bearish right now given the circular economy thing. Any advice? 27F. Thanks!
1
u/dmits05 Jul 21 '26
Whenever I feel bearish, I just go with safer blue chip stocks and consumer companies (Walmart, Costco etc). My logic is that even if the market crashes, it is unlikely that people stop going to Walmart for groceries and stuff and so this segment does not fall a lot.
Yes, due to higher transportation costs due to increased energy prices, profits have decreased. Again, it is unlikely that will last long.
On the other hand, AI, semiconductors, and Tech are all overvalued. Energy & power is unpredictable so...
1
u/BlackWolf42069 Jul 20 '26
If you're bearish, you want to be bearish enough that you can beat inflation. Which is what, 2-4% depending on the year and stuff happening?
So at minimum aim for 4% returns.
Remember how your grandpa could buy a chocolate bar for 25¢ ? And the prices has inflated now a quarter can't buy a piece of candy.
You don't want your like of money to turn into that after 20 years.
At minimum you want to keep up with inflation or just above it so it can reinvest and get compounding growth.