Bank of Nova Scotia (BNS.TO)

He likes banks, and wants the one with one of the best capital ratios and one of the best growth rates, and at one of the best valuations. Thinks there is more upside. Dividend yield of 3.86%. (Analysts’ price target is $78.67.)

(Market Call Minute.) Great international exposure and good results.

Keener on this, then on the other big 4. Trading at around 11.5X earnings. With the Trump rally, bank valuations have gone back to where they were before 2008. While some of the banks are expanding into the US, this one is expanding into the Pacific Alliance countries of Mexico, Peru, Colombia and Chile, and are achieving better rates of return and better growth rates, than Canadian banks that are expanding into the US retail banking sector. In those countries, there is more of an environment that is similar to Canada, where you have an oligopoly status amongst the players. The US just has far too much competition.

The sector has seasonal strength until December. You may only have a month left of upside in banks, but this one is already pulling back. It is safe as far as the trend line goes and as far as the breakout goes. You might sell it in the next 4 weeks of you were looking to do so.

He would not buy it. You are better off with one that has more US exposure, rather than BNS’s emerging market exposure. He prefers TD-T.

(A Top Pick Oct 13/15. Up 24.03%.) The valuation was too ridiculous and the dividend keeps going up. Also, everyone hated banks, so it seemed like a pretty good opportunity.

If you want to play Canada plus emerging markets long-term, this is probably the name to go to. His preference is to stay within North America, and he likes the banks that have a good position in the US. (See Top Picks.)

(A Top Pick Sept 4/15. Up 25.6%.) Any of the banks were an easy pick at that time. This is one of his favourites.

The US has some possibilities for Canadian banks, but there is going to be a lot of volatility. A number of Canadian banks are going to be a lot more exposed to what goes on there in the next little while, whereas this one is a lot more international. Wait a few weeks to see what follows from the hurricane blowing over the Caribbean.

(Market Call Minute.) She would buy all the Canadian banks today.

Canadian Banks? All the bank earnings just completed reporting at the end of August. The tone was that the worst of the energy patch exposure was behind them. All banks need the interest rate environment to stabilize and go up. He thinks Bank of Nova Scotia (BNS-T) is well positioned. They have a good dividend and raised it again last week.

The only Canadian bank he owns. He owns this because it has the least exposure to Canada of the Canadian banks. It is big in South America and Asia, which he likes. Prefers US banks. (See Top Picks.)

Bank of Nova Scotia (BNS-T) or National Bank (NA-T)? This has been his favourite bank this year and is the position he increased the most, It became the biggest holding in most of his funds. He likes their international footprint. They are deriving very fast loan growth, much faster than what he is seeing in Canada. Have been delivering pretty good results domestically in Canada and have been outperforming their peers on earnings growth. The valuation has come back to a small premium within the group.

Favours this on a turnaround and a relative valuation basis. He still thinks income and yield oriented products are still going to do a little better.

Has tremendous reach and scale in Latin America and South America. In Mexico they are one of the dominant banking franchises.