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Toronto-Dominion Bank (The) (TD)
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Sun Life Financial Inc. (SLF)
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Royal Bank Of Canada (RY)
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Bank Nova Scotia Halifax Pfd 3 (BNS)
Q: Dear Peter et al:
You can call me a "Nervous Nellie" if you want (!) but I am older than you and know that sometimes the story like TD to play out can take a looong time!
If one is sitting in a small loss position in TD, worth switching to another bank like RY or BNS? Or move into a riskier stock like GSY or an insurance co like SLF? I know it is comparing Apples VS Oranges. Nothing against TD. I am sure it will bounce back. But I can "see" it moving sideways for a while. Just an old man's opinion.
You can call me a "Nervous Nellie" if you want (!) but I am older than you and know that sometimes the story like TD to play out can take a looong time!
If one is sitting in a small loss position in TD, worth switching to another bank like RY or BNS? Or move into a riskier stock like GSY or an insurance co like SLF? I know it is comparing Apples VS Oranges. Nothing against TD. I am sure it will bounce back. But I can "see" it moving sideways for a while. Just an old man's opinion.
5i Research Answer:
We would agree it will likely be quiet and in the 'penalty box' for a period of time. We think it is worth holding and could have an oversized bounce at some point, but cannot of course time this. We would not object to a switch to RY for more safety, but this does come at a cost of a much higher (relative) valuation and much lower (relative) yield. But RY can certainly be considered 'safer' in the next six months or so. We think SLF and GSY are fine, as is IFC but if switching we would prefer bank-for-bank.