Royal Bank (RY.TO)

If you're going to buy in the space, BMO and RY are the two to consider. Accretion from acquisitions is working for both. BMO is 2 points cheaper. Still, he'd rather go with insurance -- MFC first, IFC second.

Banks are good to own for the long term. They did reduce their holdings 1 1/2 years ago. He wants to see how the digestion of its mortgage business runs through the financial system. Banks are getting the benefit of higher interest rates but the bulk of refinancing mortgages at higher rates is still to come over the next one to 1 1/2 years. He wouldn't add at this time.

Both are the right ones to look at. Slight preference at the moment is towards TD on valuation. Bit more negative sentiment on TD due to regulatory scrutiny. Typical cycle of what happens to all the large banks, but no skeletons lurking. Both are buys today. Valuations are fairly attractive. Outlook for dividend growth isn't as strong given current environment, but still good dividend vehicles.

RY is the 800-pound gorilla, with the ability to maneuver the banking sector any way it wants. He's long this one in his core strategy.

He'd never say sell RY. Great to hold long term. If we're going to get granular, hit a bit of a lull around $135. Probably will see interest again around $126. Hold. If you don't own any, the best one to buy a starter position in today.

He owns RY and TD in the space. More stable and diversified than the others.

Stick with it. The banks offer stability and pretty good value. RY has regained its premium valuation. Their yield is still above 4%. They remain the top bank in Canada and are prominent internationally. The big question with the banks is what will happen with the loan books. All the banks have made aggressive moves in loan loss provisions, though.

If interest rates decline as he expects, the banks will absorb any losses that arise, but that loss ratio will be a lot of lower if rates normalize. He likes the whole group, but you're safer with RY. TD offers a lower PE, true. RY is a steady producer, is the highest-quality Canadian bank. 

Banks will do better next year, with rates coming down or remaining stable at the very least. Issue with RY is integrating its approved takeover of HSBC. Low expectations going into Q1. Will be higher than it is today.

Core bank holding. Consistent, great credit culture. Layoffs should improve productivity ratios. HSBC will be a great acquisition, providing a way to increase wealth management plus gain access to immigrant customer base.

Not a fundamental analyst, but banks are quality companies. Chart looking mediocre. Would wait to buy once shares start to rise. Rally probably based on "dovish" announcements from US Fed. 

Good risk management company. High quality management team with excellent franchise value. Does not think interest rates will fall as quickly as expected. Credit losses will not be as high as predicted. Good long term investment. 

The support level is at $119 which would be a good buying opportunity. It should get back to the mid $120's by the end of the year. Set your stop loss at $113. CIBC and TD are his big bank holdings. Prices will be affected by positive inflation and interest rate news.

Banks are reflecting lots of bad news in the Canadian economy. Likes the HSBC acquisition, should add to long-term growth. Diversified. Attractive multiple around 10.5x earnings, 1.4x book. Loan loss provisions will climb a bit, but manageable. Banks report next week. Highly regulated industry. Hopes City National in US to stabilize soon. Yield is 4.52%.

An excellent company and buying pullbacks is a fine strategy. They're diversified geographically, in business (personal and commercial banking here and the US), dominant wealth management franchise in Canada, and have grown their dividend 7% compounded over the last decade. Now pays under 5%. You're paid to wait. Expect a double-digit return over a cycle.