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Capitalizing on Volatility: Turning Tariffs and Market Uncertainty into Opportunity

Table of contents

Key takeaways

  • Economic disruption and financial market volatility, while challenging, can provide investors with opportunity to maximize returns.
  • Investors can use market fluctuations as a buying opportunity, a chance to hedge against risk, or a moment to diversify for long-term gains.
  • Using asset allocation, dollar-cost averaging and global diversification can help you navigate market volatility. There are also tools and strategies, such as stop-loss orders, trailing stop orders, and options trading, to help you manage risk and protect your assets.

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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, financial 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 Direct Investing'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—of stocks and bonds—may help keep you steady. Bonds can soften stock price drops, while dips let you buy quality stocks more cheaply across geographies or sectors (for example, utilities or health care). 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 market swings.

Beyond borders: Leveraging global diversification and defensive investing

In an uncertain Canadian market shaped by evolving trade policies, tariffs, and technological innovation, 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 diversification, 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 Simulator 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 during volatile periods isn’t just about capitalizing on swings, it's also about protecting what you have. Use risk management tools like:

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.

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.