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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good morning. Again, thanks for keeping calm and reassuring. My question relates to Canadian banks. I have positions in all five of the big banks and all are down. I’m thinking this might be a good time to sell some bank positions and increase my holdings in others. Does this make sense and how best to execute? Do you have a sense for which banks are likely to recover sooner than the others? Keep that crystal ball polished. A lot of us rely on your guidance. Kindest regards
Read Answer Asked by alex on March 24, 2020
Q: At what point do the banks become a screaming buy? If TD Waterhouse has correct numbers, several are now trading below book value. I have only seen this a couple of ties in my life and it has always worked out okay in the long run. Have I missed anything?
Read Answer Asked by David on March 24, 2020
Q: Thanks for your great insight as we move through these uncertain times. U.S. Banks will be under pressure with the current virus and oil crisis taking it's toll. Some (or all) may need a bailout. What is your opinion on the risk going forward for U. S. banks, and are there U.S. Bank ETF's that trade in Cdn. $$'s on the TSX, that you feel are reasonably stable longer term, and offer the best way to play this sector at some point going forward. Thanks. Warren
Read Answer Asked by Will on March 24, 2020
Q: I tried my bank chart system and they do not show 15 year charts.
can you tell me what was the low back the great recession 2008/2009 period, for these 2 stocks. It should give some perspective on where we were during a severe recession.
Read Answer Asked by john on March 23, 2020
Q: Hi team - I was hoping to get your general thoughts on leveraging during this time of turmoil. Some of the Cdn banks are throwing off significant yields, CIBC for example 8.09% at the time of writing. I can't find any info on when they last cut their dividends even during the 2008 crisis. I'm considering using my HELOC at 3.45% (interest payment s only) and buying one of the banks and collecting the difference between the yield and interest charges. As well, writing off the interest payments next year as carrying charges in a non registered account and thinking the stock will grow in value over the next year or so. Is this a sound strategy or should I shake my head, your thoughts? Thanks.
Read Answer Asked by William on March 23, 2020
Q: I have held the above stock, (TD) for several years and recently sold,, as it has easily been the most volatile stock in my portfolio. I am thinking of spreading the risk by investing in a good bank etf or reinvesting in one bank when the situation calms down. What are your thoughts, and if the etf route is best, which one or ones would you recommend.

Thanks, David
Read Answer Asked by david on March 23, 2020
Q: Retired dividend-income investor. I currently own BNS and RY. I was planning on topping up BNS, then read an answer about harvesting capital losses. I had already take enough losses to cover my gains to look after 2020 income tax implications.
I selected BNS for its international diversification and RY for its USA diversification.

I am now considering harvesting my new BNS capital loss and was considering either CM or BMO for immediate replacement, wait a bit then do my original top-up later. Which bank to you consider the better replacement?

Thanks...Steve
Read Answer Asked by Stephen on March 23, 2020
Q: Why are all the insurance companies getting slaughtered? Because of ultralow interest rates? Good buy at these prices? Think the dividends are safe?

What would be your favourite?
Read Answer Asked by John on March 23, 2020
Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian financials in the order of their weights in our portfolio. Financials makeup roughly 7.5% of the total portfolio including cash positions and we like their dividend. TD, RY, BNS, BMO, SLF, CM, and MFC. I like to reduce exposure to financials and also like to reduce number of different shares. Two questions:
1. Is 7.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce financial weight and to reduce the number of shares in financials?

Read Answer Asked by Naren on March 23, 2020
Q: Hi - I've had about 4-5% in each of the above going into the recent crash. Do you have any thoughts on hanging on to AD vs moving money to the banks (for example). AD has been hit much harder, but the dividend is larger. I would hold on if it's clear they will come out the other side ok. Similarly with APO, if you can comment on the US side.

Thank you!
Read Answer Asked by Yasin on March 20, 2020
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