Here we go once again! The S&P 500 and Nasdaq 100 crumbled 2.2% and 3.1%, respectively, on a wobbly Wednesday session of trade. And while there was a nice relief rally going into the close, Canadian investors shouldn’t look to overreact either way. Indeed, selling stocks after an intensifying sell-off may very well lead one to miss out on historic up days. Once you miss one of those days, it can be really hard to get back in without having to pay up higher multiples and run the risk of feeling the full force of the next market retreat. Depending on when Trump plans to do away with tariffs, we could be in for more pain or a steep V-shaped recovery of sorts. In any case, don’t expect Trump to suddenly back away from tariffs with China, especially if not doing business with China becomes a focal point as negotiations with other nations proceed. Indeed, triple-digit percentage tariffs with China could have catastrophic consequences. And while it’s impossible to know how this all ends, I think moving forward with caution remains the best move on the part of investors. Get ready to ride the bear market lower. And if a 10% single-day pop just so happens to hit from out of nowhere due to some expected compromise on the tariff front, you’ll enjoy the bounce. Just don’t expect them to be sustainable, as volatility soars to painful new heights. Volatility is through the roof: Don’t let that stop you from opportunistic buying! A 10% pop could be followed by a 6% plunge, and as the VIX (the volatility gauge) soars for the skies, you may wish to nibble on the dips and trim on the pops. And if you’re not confident in your ability to make such adjustments or if you’re 100% fine with your current allocation, I have no problem with sitting back and doing nothing! Sometimes, when you’re in a state of worry, the “freeze” response beats fight or flight! In any case, if you’ve got extra cash to put to work in a less choppy kind of play, I think these two TSX dividend payers are worth a look. Indeed, the TSX Index has held its own this year, falling just north of 3% compared to the bearish crash in the Nasdaq 100. As we appreciate the value and predictable earnings over the most exciting artificial intelligence (AI) growth narratives on the planet, I expect the TSX Index will beat the S&P 500 and Nasdaq 100 in the tariff era — however long this era lasts! Dollarama Are you worried about a return of inflation and a potential recession? Dollarama (TSX:DOL) is a name that should be atop your buy list. It’s got the supply agreements in place to help Canadian consumers cope with the tariff-fuelled headwinds. And while price increases are still unavoidable, even at the local Dollarama, I think that the surge in foot traffic we saw during the post-lockdown inflation spike could become even more pronounced once tariffs eat away at the purchasing power and financial footing of Canadians. The company is poised to keep expanding, which should allow it to grow in the face of one of the nastiest economic backdrops since COVID. So, if you’ve yet to pivot towards more defensive growth, I think it’s about time to have a closer look at DOL shares, even while they’re at new highs of $169 and change. It’s a defensive grower that’s leaving the rest of the market behind!