Capitalizing on Volatility: Turning Tariffs and Market Uncertainty into Opportunity
Making Volatility Work for You
Economic and market disruptions often lead to uncertainty and hesitation. Yet history shows that each downturn is typically followed by extended market growth. While volatility is inevitable, it also presents unique opportunities for investors who stay prepared and maintain a long-term perspective. Instead of a challenge, market fluctuations can potentially become a gateway to maximizing returns.
With U.S. tariffs now imposed on Canadian goods and broader economic uncertainty, markets may face turbulence in the coming months. While some may hesitate, others will see this as an opportunity to strategically enter the market. As John Bai, Chief Investment Officer at Qtrade's parent company, Aviso Wealth Inc., says:
“The hardest times to invest are often the best times to invest. Use volatility as an opportunity”
This could be a prime moment to rebalance portfolios, capitalize on emerging opportunities, and position oneself for long-term gains.
So, how do you turn volatility into an advantage? Let’s explore strategies that help you navigate uncertain markets, manage risk, and capitalize on movement—all while staying true to your investment goals.
How to Invest with Confidence in Volatile Markets
Many investors' first instinct when the market drops is to pull back. But what if, instead, you leaned in? Some investors use market fluctuations as a buying opportunity, a chance to hedge against risk, or a moment to diversify for long-term gains.
Here’s how you can do the same:
Don’t Let Emotions Drive Decisions - It’s tempting to react when markets dip, but history shows that those who stay invested tend to recover over time. Selling in a panic often means locking in losses, while staying the course may allow you to benefit from future recoveries.
Navigate Volatility with a Balanced Approach: With shifting markets and rising volatility, a simple 60/40 mix—stocks and bonds—may help keep you steady. Bonds soften stock drops, while dips let you buy quality stocks cheaper, across geographies or sectors (for example, utilities or healthcare). Stay proactive: you may want to consider focusing on quality stocks with strong fundamentals, like dividend payers, and use dollar-cost averaging—investing fixed amounts regularly—to buy more when prices dip, smoothing out short-term swings.
Beyond Borders: Leveraging Global Diversification and Defensive Investing
In an uncertain Canadian market shaped by evolving trade policies, tariffs, and innovative technology, a diversified portfolio blending domestic, global, and cutting-edge assets may offer stability and growth potential. International stocks and tech-driven global companies offer valuable differentiation, balancing risk and opportunity in a dynamic landscape.
Maximize Your Potential with Smart Investment Tools
Understanding volatility is one thing—having the right tools to act on it is another. Qtrade provides advanced resources to help investors make informed decisions during market swings:
- Options Lab – Explore options strategies to hedge risk, generate income, or capitalize on price swings.
- The Portfolio Stimulator Tool – Build and customize a portfolio that aligns with your goals.
- The Portfolio Score Tool – Get real-time insights to make smarter investment choices.
- MyNews – Stay updated with market-moving financial news.
Managing Risk While Seizing Opportunity
Investing in volatility isn’t just about capitalizing on swings, it's also about protecting what you have, Use risk management tools like:
- Stop-loss and limit orders to minimize downside risk
- Trailing stops to secure profits while leaving room for growth
- Options strategies to hedge against downturns
- Margin accounts to amplify gains in high-opportunity moments
These aren’t just ways to potentially protect your portfolio, they’re tools to help you make the most of volatility.
Now is the time to take control, invest strategically, and turn uncertainty into your advantage.
Stay invested with Qtrade and make volatility work for you.
Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade and Qtrade Direct Investing are trade names or trademarks of Aviso Wealth Inc. and/or its affiliates.
This material is for informational purposes only. While this material has been compiled from sources believed to be reliable, Qtrade Direct Investing does not guarantee the accuracy, completeness, timeliness or reliability of this information. Information, figures and charts are summarized for illustrative purposes only and are subject to change without notice. All investments are subject to risk, including the possible loss of principal.
Aviso Wealth Inc. ('Aviso') is a wholly owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and The CUMIS Group Limited. The following entities are subsidiaries of Aviso: Aviso Financial Inc. (including divisions Aviso Wealth, Qtrade Direct Investing, Qtrade Guided Portfolios, Aviso Correspondent Partners), Aviso Insurance Inc., Credential Insurance Services Inc. and Northwest & Ethical Investments L.P.