Investment Q&A

Q: As I read the charts CM - and others but particularly CM - had two periods of significant improvement beginning in Oct '23 and then Apl '25, peaking in recent weeks around 115, well above historic levels. There are three questions here - how stretched are the current valuation, what further progress might one expect, and what caused the value to rise so substantially? I am assume that AI prospects had something to do with the rise in valuation as other Canadian Banks have done well but have no info to support that idea or what might have made CM so outstanding. Look forward to your response.

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: 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: I am overweight in financials. Can you order the noted stocks in terms top to bottom ranking?

Q: I am looking for a position in my income portfolio and would like to choose from CPX, CM and TD.
It would seem that Canada is heading into a recession and that would affect the bank earnings, more significantly CIBC than the others.
CPX on the other hand has missed earnings, maintained guidance and has dropped and likely to recover?
Which one would you choose to add?
Regards
Rajiv

Q: Hi,
I am thinking of selling my CIBC stock, as it has done well, but now has become relatively expensive compared to historical averages, and the dividend yield is comparatively lower. Can I get your top 3 choices in each of 1) big banks/financial institutions 2) mid cap financial institutions. and can I get your top 2 in small cap financials. All Canadian please.
cheers, Chris

Q: Wondering you thoughts on the Canadian banks. I currently hold TD and CBIL.

Q: Hi 5i,
In registered accounts I hold these financials: POW, BNS, CM, EQB, PRL; these tech: TXF.B, HTA and the industrial MDA. I've held them for a long time and I'm pleased with all of them.
However, given Trump may be serious about decimating the Canadian economy (witness latest threatened increase in steel and aluminum tariffs) and likely can do a lot of damage even if he doesn't completely succeed, I'm considering cashing in holdings in Canadian names and replacing with US names through purchasing CDR's (I don't have a US account and don't plan on opening one). A few of questions arise:
1. Do you think my reasoning makes sense, or would it be an over-reaction to make the move regarding all or some of my above holdings?
2. If the move is worth considering, can you suggest CDR alternatives for any of the above names you think should be replaced?
3. If I do replace any of the above CDN names with equivalent or nearly so CDR's, what can I expect regarding dividend income compared to that from the CDN holdings (all of which - except MDA - are currently yielding based high, based on long ago purchase prices)?
Please deduct as you see fit.
Thanks 5i,
Peter

Q: Re: DRIPS; for a well balanced retirement account what are your favorites DRIPs ? What about for a young persons TFSA that may not be touched for a long time ?
Thank you.

Q: Kindly comment on the CM quarterly results just released this morning. Thanks.

Q: What's your view on the idea of opening up Canadian Banking to more competition and the effect it will have on their share prices. Will they still be a 'go to' for Canadian investors or do you anticipate a sharp decline? Great service, thanks.

Q: Hello
two part question. First, If you were to choose between CM ot TD . Which one would you prefer? Is there a better bank you prefer? TD has a higher yield and has exposure to US markets
Secondly, do you think Financials will be hit further. . If so, do we stay put ?

Q: I have owned RY inside my RRIF for over 20 years and it has done very well. However it now seems to be trading at a premium to the other Canadian Banks. I hold it primarily to generate income, so I am wondering if I should sell it around the $180 level and invest the proceeds into another Canadian bank. I already hold TD, BMO and BNS and wonder which of NA and CM would you prefer? Or would you stick with RY despite its premium pricing and lower yield?

Q: I have a full position in CM and am up 58% in a taxable account. With CM tied more to the Canadian economy and with this economy on the verge of recession, would it make sense to take profits in CM, pay the tax and reinvest the money in RY or TD which have a larger stake in the US economy? CM has a larget dividend than RY but a lower one thanTD, although TD is affected by growth restrictions in the US. Or would you just ride CM?

Q: Hell 5i I am considering selling BMO shares holdings and RY holdings as they in their higher price range. Sell high buy low! My plan is to reap the profit to buy ZEB. I would appreciate your thoughts on this. Thank you

Q: CM reported a low provision for estimated loan loss, while BMO reported a higher provision. My question is do all Canadian banks follow the same criteria to determine if a specific loan is bad? If not the same criteria, the amount of provision is quite subjective.

Q: Portfolio Analytics has suggested I reduce my financials component. Over my several accounts, I own these 6 banks in Canada. What order would you sell them in (ignoring capital gains impact) ?

Q: I am fortunate to be up 50% on my CM stock. Looking forward I am wondering which of the big six banks have the best growth potential. I am thinking that CM has a more limited growth potential after such a big move, but I also have been trying to resist the urge to sell stocks with good gains. Your input would be helpful. Note that taxes are not a concern- the shares are in an RRSP.

Q: I want to buy one of the big banks for a 10 year hold and I'm leaning toward BNS. I'm dependent upon some fixed income so need either the yield, or combo of yield/growth. Which bank would you suggest. Thanks.

Q: Good Morning,

I invested in CM when the banks were getting beaten up, i have done well up 40%. i would now like to take some of the profit and invest in another Financial stock, any ideas would be appreciated?


Best

Stephen