This article was originally published on the U.S. website. The U.S. stock market experienced a global sell-off on Monday, while the TSX remained closed for Civic Day, prompting Canadian investors to review their stock wish list. Corrections in the market present opportunities to allocate funds for long-term investing.
Certain investments have demonstrated their resilience in a portfolio during market fluctuations. Infrastructure stocks, such as Brookfield Infrastructure Partners, Brookfield Renewable Partners, and NextEra Energy, stood out during Monday’s market slide on U.S. exchanges.
Despite plunging by as much as 6%, Brookfield Infrastructure and Brookfield Renewable stocks were only down by 0.4% and 2% in U.S. trading, respectively, as of 1:05 p.m. ET. NextEra Energy’s stock experienced a 1.6% decrease, compared to the S&P 500’s drop of 2.7% at that time.
Brookfield holds critical assets and has benefited from recent trends that show promise for continued growth. Both Brookfield Infrastructure and Brookfield Renewable reported positive second-quarter earnings, indicating ongoing business expansion.
Brookfield’s diverse portfolio includes transportation, utilities, energy transmission and storage, and data transmission. Additionally, its recent acquisition of the world’s largest owner of intermodal shipping containers has fueled growth in the transportation segment.
Brookfield Infrastructure also owns data center assets powered by its sister company. Brookfield Renewable reported a significant increase in funds from operations (FFO) in the second quarter, driven by the growing demand from technology companies for power to support cloud and AI technologies.
Considering the current 10% decline in Brookfield Renewable’s shares on the TSX year-to-date, now may be an opportune time to consider adding a position in the portfolio to support the ongoing development of data centers. NextEra Energy, which combines traditional utility holdings with renewable power supplies, is also well-positioned to contribute to powering these facilities.
The recent market fluctuations highlight the value of including these critical asset owners in a portfolio to mitigate sharp declines in growth stocks during periods of high volatility.
