Q: You recently recommended 20% financials in an income portfolio. I own BNS, TD, SLF, FFH, OCX, and BAM.A. Would you consider FFH, OCX, and BAM.A to be financials? If so would you recommend a weighting of approximately 3 % in each of these 6 stocks? I note that the OCX share price has pulled back - would you recommend adding to it now? Many thanks for your great service.
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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: Re: Banking Industry in General (with reference to Jim's post):
I also am concerned with the banking changes. I would guess the majority of Canadians aren't aware these changes took place. I've read that saving/checking accounts wouldn't be included, but they certainly were in Countries that did have bail-ins. I've put some money/investments in a local Credit Union just so I wouldn't have everything in one place. It may not make a difference, but maybe it will. Another thing some people may not be aware of is Canadian Banks got a "sort of" bailout in 2008 through the CMHC. I still don't know all the details of what took place and I think it is all paid back now, but it certainly wasn't front page news.
This would be less of a concern to me if the US had thrown some executives in jail instead of just fining the companies. There is no accountability or admitting of guilt anymore, just pay a fine and move on (or in Politician's cases, shuffle cabinet positions around).
Sorry if this rant offends anyone, I don't mean it to be that way.
Paul
I also am concerned with the banking changes. I would guess the majority of Canadians aren't aware these changes took place. I've read that saving/checking accounts wouldn't be included, but they certainly were in Countries that did have bail-ins. I've put some money/investments in a local Credit Union just so I wouldn't have everything in one place. It may not make a difference, but maybe it will. Another thing some people may not be aware of is Canadian Banks got a "sort of" bailout in 2008 through the CMHC. I still don't know all the details of what took place and I think it is all paid back now, but it certainly wasn't front page news.
This would be less of a concern to me if the US had thrown some executives in jail instead of just fining the companies. There is no accountability or admitting of guilt anymore, just pay a fine and move on (or in Politician's cases, shuffle cabinet positions around).
Sorry if this rant offends anyone, I don't mean it to be that way.
Paul
Q: Hi 5i Team,
This is an unusual question and feel free to take a pass on it, as it might not fall within the definition of the service you offer, and I would fully understand. Also, feel free, if answered to post or not.
There have been bank confiscations in Cyprus. And I believe, banking problems in other jurisdictions where the depositor has taken the hit. Rare, but they happen.
We were supposedly immune from such confiscation action by the rules and regulations of the banking industry, and also having relatively strong and stable economies and banking systems.
Since the Cyprus event, and the problems of the 2008 crash, according to articles in Canadian MoneySaver (May and June, 2013), the banking rules in the US and followed by Canada have been modified to allow for the backs to take money from their depositors, during an economic crisis, rather than rely on a government bail out.
This is not something that keeps me awake nights, but it does nag me as ... How does this make sense ?
I do not understand why the regulations were changed. Changes normally happen if there is a "really big reason to do so." In other words, If our economic and banking systems are in such great shape and are expected to be for the distant future, why change the rules ? The implication is that perhaps some sort of condition could occur that to save the "systems" (government budget and banking system), the investors will take the hit. (This also raises the option that ... Hey, why not just print money and give it to the banks as in the past - there was grumbling, but it did solve the problem).
I guess I am looking for a general comment on banks, safety of deposits, and why need to change regulations.
Thanks for the great service.
Jim,
This is an unusual question and feel free to take a pass on it, as it might not fall within the definition of the service you offer, and I would fully understand. Also, feel free, if answered to post or not.
There have been bank confiscations in Cyprus. And I believe, banking problems in other jurisdictions where the depositor has taken the hit. Rare, but they happen.
We were supposedly immune from such confiscation action by the rules and regulations of the banking industry, and also having relatively strong and stable economies and banking systems.
Since the Cyprus event, and the problems of the 2008 crash, according to articles in Canadian MoneySaver (May and June, 2013), the banking rules in the US and followed by Canada have been modified to allow for the backs to take money from their depositors, during an economic crisis, rather than rely on a government bail out.
This is not something that keeps me awake nights, but it does nag me as ... How does this make sense ?
I do not understand why the regulations were changed. Changes normally happen if there is a "really big reason to do so." In other words, If our economic and banking systems are in such great shape and are expected to be for the distant future, why change the rules ? The implication is that perhaps some sort of condition could occur that to save the "systems" (government budget and banking system), the investors will take the hit. (This also raises the option that ... Hey, why not just print money and give it to the banks as in the past - there was grumbling, but it did solve the problem).
I guess I am looking for a general comment on banks, safety of deposits, and why need to change regulations.
Thanks for the great service.
Jim,
Q: Hi Peter, for a smaller bank would you prefer LB or CWB ? Does either seem reasonable to you at this time ? Thank you, Paul
Q: Hi
Could I have your opinion on The Bank of Nova Scotia 5.50% 5 Year Rate Reset Preferred Shares, Series 36
Thank you
Could I have your opinion on The Bank of Nova Scotia 5.50% 5 Year Rate Reset Preferred Shares, Series 36
Thank you
Q: I noticed recent insider buying in OneMain Holdings. Is this stock too risky to buy?
Q: What do you think of the credit quality of Fairfax, in regards to preferred shares?
Anything to be concerned about?
As always, thanks..
Anything to be concerned about?
As always, thanks..
Q: In a response to a recent question, you said that you could see Cannacord increasing by 50% or more in value with better capital markets. My question is this. Do capital markets usually improve before the price of oil increases (as I assume CF is largely dependent on activity in the oil patch) or after an increase or could a continued lower price also stimulate activity as the strong take out the weak? Guess I am wondering what type of catalysts to look for when deciding whether to continue to hold this.
Appreciate your insight.
Paul F.
Appreciate your insight.
Paul F.
Q: Your thoughts on the recent purchase.
Q: What do you think of this US bank. Ron
Q: Hi there - can I ask for your opinion on PRA group? Analysts seem to have mixed opinions on the company, but it looks interesting based on some of the reading I've done. It's down heavy this morning after what looks like a minor miss.
Thanks much.
Thanks much.
Q: Do you think BNS will meet expectations when reporting this week? And would a sale make sense before or after their numbers are released??
Q: Hi. Could you please comment on recent earnings, dividend increase, outlook etc? Much appreciated.
Q: What do you think of this etf ?
Q: what is 5I position on bns exiting the asia market ? Was it not for bns foreign exposure the basis for your recommendation?
Q: MFC has recently had a substantial pullback. Is there a reason to be concerned? At over 4% yield, would you consider it a buy at these levels? Thanks.
Q: I have a full position in the major banks and a half position in NA. I sold NA this morning after it dropped $1100, and all the other banks are down big time as well. What hit the fan?
Q: Hello,
What do you think about replacing TD (5% loss) with IGM?
Thanks
Marios
What do you think about replacing TD (5% loss) with IGM?
Thanks
Marios
Q: Could you comment on recent results ?
Q: Hi Team:
Interesting article in Saturday`s Globe about negative interest rates. I have held a # of Cdn
bank stocks for years & have benefited from their dividends & rarely check their stock prices. It is interesting to note the conflicting views in the article concerning the ramifications of going negative. If Canada joins the sub zero fraternity, what effect would this have on the shares of my Cdn Banks?
Thanks: Jerry
Interesting article in Saturday`s Globe about negative interest rates. I have held a # of Cdn
bank stocks for years & have benefited from their dividends & rarely check their stock prices. It is interesting to note the conflicting views in the article concerning the ramifications of going negative. If Canada joins the sub zero fraternity, what effect would this have on the shares of my Cdn Banks?
Thanks: Jerry