Q: I feel I have too much financial exposure (23%) in my portfolio. I have room in industrials. With Canadian banks at the higher end of valuations, would it make sense to sell TD and purchase industrial stocks or an ETF? This is in my TFSA, do you have recommendations? Thanks
5i Research Answer:
We would focus on sector allocation rather than trying to specifically time or game the market. If one is overweight one sector and underweight another then it makes sense to diversify. We are not overly worried about financials, but industrials could have more upside potential under certain conditions. We would suggest: WSP, STN, CNR, TFII.