Investment Q&A

Q: For new money, over a five year time horizon, which would you prefer for total return?

Q: Hi 5i
With respect to Johns question today on pe numbers. Where do you find these numbers?
My brokerage on TD show RY's PE at 16.54 and BM's PE at 17.
Wondering why the big difference?

Having read your response to johns question I understand at higher PE they are trading at a little pricey share price.
At these levels it seems prudent to lighten holdings?
However do you have any insight into who is majority buyers at these levels, is it institutional buyers or mainstreet action?
thx

Q: Which of the Big Six banks will you purchase now if no exposure to any?

Thanks!

Q: The big 6 Canadian Banks? I do not know why many investors have an aversion to the banks? Over the last 15 years the capital appreciation and dividend compounding have been second to none. I own a good portion in my varied portfolios and all have performed extremely well with the exception of BNS. I have a friend who invested 15 years ago in the banks $1.5 M - now over $8M and generate a lot of income for him. I think he owns now about 40,000 shares. I think most if not all portfolios should contain a good helping of the Canadian banks. He is my age 77 YO.

Q: Hi, I am wondering about the Cdn bank ETF offering a bit of leverage through loans called HCAL. It sounds like a reasonable way to execute a bit of leverage, but I have to wonder if it is better than owning some of, or all six of the Cdn banks. Would you recommend the ETF, or just owning some combination of the banks directly. If owning the banks directly could you offer an opinion on which ones you prefer and how many? Would you overweight one over others, or stick with an equal weight ownership? As always, your insight is very much appreciated - thanks!
D

Q: How would you rank from best to average, BN:CA, BMO:CA, BAM:CA, TRI:CA and SLF:CA for my grandchildren's TFSA. The TFSA contents would be given to them in about 10 to15 years.
Thank you,
Frank

Q: Have an RRSP currently holding 2 bank positions (BMO and NA) that represent 11% of the portfolio Also hold XIU and XIC that total 15 percent of the portfolio and CDZ that is roughly 10 % of the portfolio.
Thinking of adding BNS or selling the two banks and buying ZEB. Which is better option given the other ETF’s ?What percentage holding in the banks would be appropriate?
Also should portfolio hold both XIU and XIC or should they be combined into one of the two. And if so how does this affect the direct holding in the banks? Perhaps not needed at all? Would appreciate your comments.Thanks.

Q: Between the big 5 banks, please rank in order of
a. biggest dividend increases average over the last 5 years.
b. your impression of most likely to perform in the next 5 years
c. least likely to be affected by american geopolitics

Q: My financial holdings are TD, BNS, BMO, MFC and SLF. With the recent surge in the banks I am looking to rebalance back to a 50/50 split between banks and insurance companies. If you were to add a third insurance company, which would it be? Or should I add a non-bank/insurance company like BAM or X which is still classified as financial? I am only interested in large cap, dividend-paying stocks.

Q: Can I get your thoughts on earnings today. Also would you buy after todays results and where would you rate the bank in the big six

Q: Good morning,

I'm trying to help my daughter (who is in her late 20s) with her portfolio which is a bit difficult because she is morally opposed to several lines of business (crypto, oil/gas, AI, defence to name a few) however I did notice she doesn't have any major CA bank equities at the moment. Some of my co-workers use a different research company who I think recently advised their clients to sell TD. I didn't see any recent questions on here about the CA banks lately so could you please tell me what your preferred bank is at this time (regardless whether I listed it or not.) It will be for a long term hold in her FHSA.

Cheerio,
Zara in BC

Q: I have been asked by a 23 year old to provide suggestions for when she initiates her FHSA.

I immediately thought of the banks , which I believe is the premium Canadian sector for long term growth, growing dividends , and safety. I would also recommend a more Canadian diversified security (UMAX ) for her next purchase. Of the above banking securities ( all owned between my cash, tax free, and registered accounts ), which would you start with ? Would you be comfortable with UMAX as second pick ( admittedly hasn’t done much but provides diversification into large cap companies and a good distribution yield). I am only interested in Canadian securities at this point. Should I be comfortable with this approach? Any thoughts would be appreciated.
Thanks. Derek .
Any

Q: Hi

I was wondering your thoughts on BMO and its sale of branches to First Citizens Bank. What do you think of the transaction, any issues with BMO's credit quality (does this improve), is there an overhang on the stock with the pending deal and timing of the close. Overall - is BMO more attractive after this announcement and do you view it as a buy, sell or hold.

Q: A follow up to Mark's question on Oct 2nd regarding buying the Canadian Big Banks, you mentioned that you would not need to buy the banks in a portfolio. Can you elaborate and explain the thought process. Also how would you allocate a portfolio in terms of weighting in such a scenario.

Q: If you were an income investor and wanted to invest in each of the 5 big banks, given current valuations and yield, what percentage of the money you have marked for investing in banks would you allocate to each?

Q: Not that I'm complaining, but what is with Canadian bank stocks in the last six months? I'm used to slow, plodding stocks, and they are rivalling Google for momentum. All of them are up from 23%-38% in the last six months with no sign of a slowdown. It's not like we have a booming economy.

Q: I own the above listed Canadian Stocks. Please rate each one as a BUY, HOLD or SELL and the reasons for your rating. Thank You.

Q: In your opinion, are Cdn. bank stocks overvalued and is it time to trim. Along with two Cdn insurance companies they currently represent approximately 26% of our portfolio

Q: Would you throw some light on “ provision for credit losses “ ( PCL ) that the banks use in their financial statements. It seems to have a significant impact on earnings. How is it determined ? Analysts take it as a poor contributor to earnings. If a bank lowers its PCL how does this actually increase its profitability ? Is there a formula to determine its PCL and how trustworthy is this ? Seems to me that a bank could alter the PCL number to better their numbers. Thanks. Derek.

Q: Hi - Can you provide comments on the recent qtr for BMO and BNS. I would like to add financials. Which would you prefer or is there another you would prefer.3

Thank you