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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: Hi
I'm down 40% on the U.S. bank ETF, but with only a 1.5% weighting. I'm a true believer in that the most important metric in buying stocks is what you pay when you take a position. Being down 40% is presenting a huge opportunity if the Good out weighs the bad in these regional banks. Are there enough solid banks here to justify a 3% weighting in your opinion.
Thanks
Read Answer Asked by Gordon on May 11, 2023
Q: I currently hold CIBC and BNS and think it a good time to add to Canadian banks due to the low valuations and high dividends. Do you see any issue with this? Time horizon is at least 6 years. Should I add to these existing or add the other 3 large Canadian banks? I also hold the BMO Canadian banks in my wife's portfolio.
Read Answer Asked by John on May 10, 2023
Q: Hello 5i. I just watched a panel of former U.S. Fed economist, former Regional Bank CIO and Dick Bove, long time bank Analyst discussing US Regional banks on BNN. Their majority opinion is the Fed has lost all credibility with the markets, Bove has a list of 30 US regional banks he thinks are in peril, He thinks the only solution is a very deep recession. After that he sees Canadian banks having a "field day " buying US regional banks at discounts prices.

This is a very brief recap of the discussion and I am not planning to get out of the market, but this growing opinion that the Fed has lost control may cause some to greatly reduce their equity holdings.

I would appreciate your thoughts on this.

Thanks, Mike
Read Answer Asked by Michael on May 09, 2023
Q: One source describes RBC and TD banks as having wide-moats; BNS and CM banks it describes as having narrow-moats.

Do you agree?

Is this something that someone who has a concentrated portfolio should especially heed?

All the best!

R

By the way, I really appreciate all 5i/Cdn $ Svr does. Thank you!
Read Answer Asked by Roderick Jay on May 08, 2023