Stock price when the opinion was issued
Tariffs have spurred a flight to safety, and banks can be a good place to be. Level of resistance going way back to 2022, and the stock decided to fall when it reached that level again. Things happen for a reason, investors have memories.
The question is: How much selling will take place? Not a prediction, but worst-case is pullback to ~$130; a 50% chance or greater that it will do that. A near-term trader like him would probably sell now, get back in later. A long-term, buy-and-hold investor would probably just accept the fluctuation.
Among Big 6 in Canada, more exposed to commercial lending. Commercial highs are higher in US, but lows are also higher, than in Canada. Extra credit provisioning is behind them. Likes synergies from Bank of the West. Excellent wealth franchise and growing. Formidable capital markets business is growing quickly. Strong balance sheet. Nice dividend will probably grow.
A good day to buy, despite tariffs.
Looking at the chart, the 50-day MA and the 200-day have converged. It's trying to find support right here, right now. The price doesn't have to fall, the indicators can just soften as the market works through the oversold level. If it doesn't hold, it would certainly be a buy amidst the congestion between $104-130.
Not doing too much right now. Starting to trend higher, was $150 in 2022. Short term, nice upward trend; we're hitting breakeven on the year, outside of dividends. If it can get back up to $145-150, good possibility it could catch up to the better-performing banks. He owns CM and TD.