BMO EQL WGT US BANK HDGD TO CAD IDX ETF (ZUB.TO)

He likes US banks. He prefers ZBK-T, because it's the unhedged version and he expects the Canadian dollar to soften up this year. But it's a little riskier. Otherwise, buy the safer, hedged ZUB.

Loves this space (U.S. banks). He owns many of them. He'd add to ZUB here. Some U.S. banks, like JP Morgan, report earnings next week. Another catalyst is their trading revenue is expected to rise in a big way. Interest rates rising are anothe tailwind.

(A Top Pick Jan 8/18, Down 20.79%) It is trapped in a trading range. It should do okay until June when the seasonality runs out on it.

(A Top Pick July 11/17 - Up 13.7%) Still own it. Like the US banking sector specially with the deregulation coming on the Dodd-Frank bill, etc. This is basically the large banks.

(A Top Pick March 24/17 - Up 26%.) At the time was recommended with his belief that US banks were cheap. They would benefit from tax cuts. Benefit from regulatory changes. It is still a good idea.

(A Top Pick December 1/17. Up 4%.) He still owns it and likes it. The regional banks are attracting his attention now.

BANK-T vs. ZUB-T. Exposure to US or International banks. The yield curve is telling us we are headed toward a recession 6 to 18 months out. The yield curve is flattening so banks’ net interest margins will not improve. He does not want to chase them here.

The chart shows this is in a bit of a moonshot. The RSI indicates this just broke into overbought territory. If you own, you should trim some. If you want to buy, wait for it to come down a little. Trading in a channel, so wait for it to reach the bottom of the channel before you buy.

If you own this, continue to hold. They are deregulating the US banking system and it is part of that whole tax reform package.

Feels the US banks are going to benefit from a rotation in the market. Chart shows this has gone sideways for most of 2017 and is now breaking out. Whenever you get this kind of pattern, you tend to get good moves. Thinks there is going to be a rotation because these were overlooked when people were buying everything else.

Thinks this is one of those sectors that’s been underappreciated. Just recently broke out, which is time to buy. He thinks markets are going to pay attention to the U.S. banks now and that this is going to be one of the top performing sector next year, or at least one of the better performers.

(A Top Pick Oct 6/16. Up 40%.) He still likes this. He had thought that if Trump were elected, this was something that would grow.

We are a bit early for the period of seasonal strength for the US financials. From a low of September 29 to a high of December 26, this thing has had phenomenal returns over that time in the past 20 years. 5.36% on average for the past 20 years.

US Financials ETF? Banks insurance companies, etc. The list is too long to mention. The US financial regional banks have underperformed relative to the broader market. Get an ETF like ZUB-T that is hedged. He thinks these are attractive. ZBK-T gives you exposure unhedged in US$.

(A Top Pick Aug 4/16. Up 39.96%.) If they get the Dodd-Frank thing turned around and stripped out, that will be very good for the US.