Citigroup Inc. (C)

This is a diversified financial. It has good emerging market exposure. He likes owning financials now, but thinks the valuations are getting too expensive. He would prefer Bank of America with a more US focus and the e-brokers.

He has also been selling many bank holdings in Canada. The momentum is weakening and you are getting lower highs and lower lows. You would probably bring buyers back in about $56-$60. Pay attention to stocks rolling over.

He likes them because the valuation is very reasonable. It has a great global network, giving exposure to global economic growth. They may look to unlock value by slowly selling off assets that do not create shareholder value. He is in it for the long haul.

He likes all the US banks. Regulations are coming easy for them as opposed to more difficult. Reasonable investment bank arm. He likes other US banks better at the moment though.

(A Top Pick July 11/17 Up 4%) He still loves the big US financials, especially those too big to fail. They are doing all the right things including stock buy backs. He thinks they should be increasing their dividend. As interest rates go up they will increase margins.

The U.S. banks are attractive, though he prefers others to Citi. Citi is more international with operations in Mexico for example, so they don't benefit as much from U.S. tax reform.

(A Top Pick April 6/17 - Up 20.4%) Still like it. Trading at one times book value. One pf the cheapest in the group. Lighter regulatory environment will benefit them. They have a strong global presence (50% of their revenues).

An underperformer for years. He owns a few US banks, but not this one. This is still struggling on the execution front. Morgan Stanley performs better.

(A Top Pick March 9/17, Up 24%) Trading at just above 1x book-to-price value. Dividend of 1.7% will likely climb and/or continual share buybacks for the next few years. Will be $60 billion of capital returns to shareholders. A lighter regulatory environoment will help. Their global presence (i.e. Latin America) distinguishes them from other American banks, like Bank of America. 50% of revenues come overseas.

(A Top Pick Feb 6/17 Up 35%). He loves this company and has a big position, buying after the US federal election. The US financials are starting to make interest spreads again. Higher interest rates will be a major positive and they are promising dividend increases. They only pay out 20% of earnings in dividends and thinks the dividend could be increased. Yield 1.7%. (Analysts’ price target is $83.85 )

He loves this company and has a big position, buying after the US federal election. The US financials are starting to make interest spreads again. Higher interest rates will be a major positive and they are promising dividend increases. Yield 1.7%. (Analysts’ price target is $83.85 )

This has been doing quite well. The RSI indicates it is in overbought territory, similar to all the major US financials. A good idea would be to either trim a little, or use a very simple defensive tool like a 10 or 20 day moving average with a trailing stop.

US banks don't really have a stronger competitive advantage, simply because there are a smaller number of Canadian banks. Given that you are exposed to currency risk, he would favour Canadian banks. We are probably 18-24 months away from the next recession, and banks normally don't do well in that kind of environment. However, this is a relatively good franchise if you do want an American bank.

(A Top Pick Jan 5/17. Up 28%.) He would continue owning this. Thinks it goes substantially higher. Their earnings are coming out on Tuesday

Too big to fail. If it went to the same valuation as Bank of America (BAC-N), it would be over $100 a share. It’s trading right on its model price. Mean estimates for 2018 are $6.16. Earnings come out on Tuesday, and he expects there will be a lot of good news. There is a chance of doubling the dividend. Dividend yield of 1.6%. (Analysts' price target is $82.)