Q: How do you see the Canadian bank stocks doing in the present interest rate and political environment?
5i Research Answer:
We would expect them to bounce around but ultimately work a bit higher. Canadian interest rates are very likely to continue to decline. Yields are high and dividends likely quite secure. Valuations are at the low end of historical ranges in many cases. Talk of recession and possible US competition will keep sector investors on their toes, however, and this could impair sentiment a bit.