Two buys and one sell for investors worried about a market crash in 2026

Given that we are about to turn the page on a new year, investors may be reconsidering how robust their portfolios are and whether they can withstand any kind of market headwinds over the course of the next twelve months.

Of course, it’s virtually impossible to predict what kind of bullish catalysts or bearish headwinds will emerge in the coming year. Outside of AI (and the bull/bear case surrounding this crucial technology), there aren’t many areas where predictions will be useful. For example, I have no idea where interest rates, commodity prices and other key factors will end up next year.

That said, given the current underlying dynamics in the market, here are two stocks that I think could have a big year next year regardless of the macro backdrop, and one I don’t think is well positioned to deal with what lies ahead.

Buy: Fortis

One of the best dividend growth stocks on the market and a company that I believe can continue to deliver growth into 2026 and for decades to come. Fortis (TSX:FTS) is one of my most defensive stock picks for the coming year, for investors with a long-term investing horizon.

This is mainly due to the fact that Fortis’s business model, as a major regulated utility supplier of electricity and natural gas to millions of residential and commercial customers, is in reality acyclical. In other words, whatever happens to the wider economy, the AI ​​expansion is in full swing and existing customers will have no choice but to pay their Fortis bills to keep the lights and heating on. That cash flow stability and potential for dividend growth have kept Fortis’s dividend yield relatively low at just 3.6%.

That said, I think the company’s upward capital growth should deliver high single-digit or low double-digit annual returns over the long term. In a potentially volatile year, that’s good enough for me.

Buy: Manulife

There are few sectors that are as defensive as life insurance, and in this sector Manulife (TSX:MFC) is one of the best options for Canadian investors looking for profits right now.

The company’s core life insurance business has remained solid and Manulife has delivered increasingly strong results in recent quarters, supported by higher returns on longer-term assets. Like other insurers, Manulife must match its longer-term liabilities with assets that pay out over longer periods (such as bonds). Lower returns, or even expectations of lower long-term returns, have boosted the company’s prospects in this regard.

In addition to this underlying strength, the company’s asset management activities are also on the rise. This is mainly due to the company’s growth strategy in Asia, and that is the key to my long-term thesis under this name.

With the shares returning 18% year-to-date and yielding 3.5%, investors have achieved a total return of more than 20% this year. While 2026 may not produce such rosy numbers, it could still be a very profitable year for investors in this name, in my opinion.

Sales: Lightspeed Commerce

There’s one Canadian growth stock I’ve become more bearish on lately Lightspeed trading (TSX:LSPD).

Shares of Canadian tech stocks have been absolutely decimated in recent years as point-of-sale software rollouts and numerous strategic shifts have failed to bear fruit.

I previously discussed how this stock was very overvalued during the 2021 boom, when shares soared to over $150. Now that it’s trading around $16.50 and down 25% since the beginning of the year, I don’t think investors want to back that up, especially if valuations in the tech sector continue to fall.

I think Lightspeed may need to raise more capital at some point to stay afloat, and it’s not growing as investors clearly hoped. This is a Canadian tech stock that I personally wouldn’t touch with a 10-foot pole, but that’s just me.