Q: I'm underwater 10% on BNS and TD. What are the benefits of sitting on this? If I was to sell and reinvest, what do I buy?
5i Research Answer:
In addition to attractive valuations and very nice and (mostly) secure dividends, each offers potentially nice gains once the US banking crisis subsides. We would be willing to hold these for a recovery, provided an investor has a decent time frame. They are not risk-free but we do not believe the current crisis will significantly impact Canadian banks in terms of fundamental quality. For other ideas, we think DOO, NTR, TRI and BN are attractive.