The Panic-Proof Portfolio (Stockchase Research)Royal BankRY.TOTOP PICKFeb 10, 2026

You can buy those calls back, and then roll up to $320 or so. If you buy back the near-term call, and then sell a longer-term call, chances are it won't cost you any money.

Absolutely don't sell a put to oblige yourself to buy more, not right now. You want to sell puts when the premium is really good. Premium here isn't good, as stock's been heading straight up.

Great quarter. Belle of the ball of the banks. Strength in Canadian lending in both personal and commercial. Less cyclical than before, as rough markets lead to more trading and helps diversify earnings profile.

Trading at 17x PE, whereas longer-term multiple is around 12x. Outlook for earnings growth is still very robust, but potential for re-rating downwards on the multiple. 

Trim a bit, just to buy something that's a bit more undervalued. If coming in fresh, wait for a more attractive entry point.

He's a bit wary on the sector, and questions the high valuation as well. Always traded at a premium -- stability, growth, strength in wealth management. But the premium has eroded, as they're all expensive now; that argues for holding onto this one. CEO stated that demand for credit and loans is staggering, which would support another leg up.

It doesn't matter which Canadian bank you bought 20-30 years ago; all offered double-digit returns with growing dividends. No question that their valuations are the highest in a long time, because they sailed through all worries (higher mortgages, a Toronto housing collapse didn't happen, tariffs, Iran war). Meanwhile, the banks have transformed more to fees and recurring revenue.

Today he's taking money off the table in the sector. Why? Valuation. Trading today at 2.6-2.7x forward book value, yet the business hasn't really changed all that much. In on the SpaceX IPO, which is like money from heaven.

She's been wrong about the Canadian banks the past year, that they're expensive. They were up 30% last year + 20% this year. These stocks are priced for perfection and trading well above historical averages in PE. Wait. Last year, they released provisions for loan losses into earnings, which was a temporary boost. Their only growth aspect this year is how many branches a bank can close, which is a weak growth driver. She hasn't bought any banks this year.

He's a big fan of EQB. Phenomenal CEO, who'll take company to new heights. Will most likely outperform in next 3-5 years. Organic growth will be higher. A more agile and flexible organization. Digitally native, so it's built to adapt. Very conservative provisioning.

You buy RY for stability, its huge infrastructure, and capital markets business. Sufficient provisions for consumer credit issues. Very solid hold for the longer term.

Both are a Buy in his books. 

Among all the Big 6 banks, this would be his choice. Clean story, premium valuation (which is fine with him). Gold standard.

His favourite, the 800-pound gorilla. The biggest, the baddest, and it dominates.

Banks were the second-best performer in 2025 globally. Now, he's trimming his Canadian banks based on valuations. Be careful if you're concentrated in Canadian banks.

Banks in general have peaked but Royal Bank is a little different and is sort of at a base level. He holds TD and CIBC.  Long term banks are good but we are entering a pause period which could go for up to a year. He is not recommending buying banks now,

With Iran conflict, yield curve has gone a bit flat, so net interest margins aren't going to be as good. If the conflict persists, earnings will possibly decelerate. This name is best positioned for all that. Usually trades at 11% premium to peers, now 8%.

If you assume that the conflict gears down to more manageable levels, you could buy the banks here and this name is the best choice.