Q: I am thinking about selling my TD shares and replacing them with another Canadian bank or financial services company. Do you thinking selling TD is a good idea or should I hold on and wait for a rebound? If I sell what would be your first choice of a Canadian bank or financial serviices company? Looking for growth, yield and stability for total return for a 5 year hold.
5i Research Answer:
We would be OK with a tax loss/rebuy strategy on TD. But we think, with valuation and sentiment so low it does have recovery potential over the next two years. If sold, IFC or SLF we think might be good replacements.