Stock price when the opinion was issued
Canadian financials have actually underperformed year to date. It depends on what energy is going to do. This won’t be a wildly underperformer or outperformer. If the market were to pull way, way back, he thinks the banks will outperform by going down less. He prefers cherry picking insurers and banks and hopefully outperform the ETF by a couple of percents if you get them right.
Don’t use it. It is broad financials. Insurance companies will be impaired for a number of years. If you want banks go with ZEB-T, but don’t buy it here.
Period of seasonal strength for the Canadian financial service sector is from the 3rd week in January right through until the 3rd week in April. A lot of this has to do with how the financial services are reporting their results. Technicals on the sector right now are kind of mixed. Has basically been going sideways for almost 3 months now. On the other hand, if you get a break above the $30 level, you could see a move up until the 3rd week of April.