Over the past ten years, many American corporations have exceeded the $1 trillion barrier. Even though the present economy and bear market have temporarily put back equities, many more will still arrive. Simply said, the current bear market won’t persist forever. The bull that comes after might make today’s market reversal another glitch on the road to a comfortable retirement.

Looking to 2042 for significant gains

Now, investing in bear markets is difficult unless you’re a long-term investor who can look beyond the upcoming year or perhaps the upcoming decade. In 2040, when many of today’s youthful investors anticipate retiring, the well-known blue-chip stocks may attempt to surpass the $1 trillion market cap record.

It’s not an easy task, and there will undoubtedly be plenty of other market reversals and crashes along the way. However, the Canadian stock I’m about to discuss can help you reach your financial objectives if you plan to retire in 2040 (or beyond).

Undoubtedly, the incidents have many people worried. The current market decline, however, appears more like a chance to gain money than a threat to your retirement goals if you broaden your investment horizon.

The largest Canadian corporation currently has a market cap of more than $178 billion. To reach the $1 trillion mark, it would have to be an almost six-bagger. For the ensuing ten years, such returns might not be feasible. But I believe that during the next 20 years, several businesses will attempt to surpass the $1 trillion milestone. Although they will lag behind their American counterparts by a few decades, I believe that Canadians should cling to the following mega-cap.

CN Rail: $1 trillion-dollar company in the making?

CN Rail (TSX:CNR)(NYSE:CNI) is Canada’s fourth-largest company, with a $106.3 billion market cap. It will indeed take some time before the business reaches the trillion-dollar threshold. Even so, I think it’s just a matter of time and that it’s well on its way. You can observe that the long-term chart has been moving up steadily over time by looking at it. CNR stock has increased by 1,000% since 2022.

Indeed, during the past 20 years, CNR has been a significant winner. However, investors in meme stocks looking for quick, massive profits will not pay heed. I advise investors to focus on the wide-moat rail kingpin if they have a 20-year time horizon. Remember that CNR has increased its dividend each year as well. CNR stock is more than a 10-bagger in 20 years when dividends are considered.

I contend that CNR’s previous exponential growth will continue over the following few decades, given a new, competent management team led by Tracy Robinson, a growing 1.9% dividend yield (on the historically high-end), and these factors. Additionally, given its most recent quarterly beat of $1.93 earnings-per-share (EPS) versus the $1.75 consensus goal, the stock is well-positioned to survive short-term macro headwinds. Simply exercise patience, and the substantial gains will materialize.

I think CNR will become the first $1 trillion Canadian company.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• TFSA Investors: 2 Dividend Kingpins To Watch As Markets Continue Tanking