Q: I hold TD-T in a TFSA with a loss of about 10%. I have read you comment that TD-T is now a hold. But I keep wondering if I should switch to RY-T and expect to make up the loss over time......keen to hear your take.....Tom
5i Research Answer:
We are always cautious when an investor plans to 'make up a loss'. This can lead to excessive risk-taking. RY is a larger, better company than TD in our view. We would see it as safer. But it is now about 40% more expensive than valuation, so 'safer' does not always result in a better stock performance. If an investor is conservative and only wants one bank we would suggest RY. But we think as attention wanes on TD's problems the stock might perform better.