Bank of Nova Scotia

If we see a Santa Clause rally in the market, most stocks will go up. Relative to the market, banks might see further erosion. He wouldn’t buy the bank just to play the rally. Still lots of changes in S. America. He would wait until January to see how it goes. We’re finishing off the seasonality of banks.

Seasonal now? Typically bank stocks drift higher entering earnings season, so this is normal. Even though BNS match estimates, it sold off. Normal. That said, bank stocks can still do well, though he advises rotating from Canadian to American banks which enjoy more runway. $71 is support, which previously was the resistance level. BNS is holding up well with income growth.

This has been the toughest bank to own given their exposure in Chile and other locations in South America. He still owns a little for the international returns. Investors are likely putting a higher discount on them, because of the higher risk factors. You should still be able to see high single-digit returns this upcoming year. He would always hold a basket of the Canadian banks. You could pick up some at these levels.

Results were in line with analyst estimates. Overall, banks have lagged here and represent good value here. Relative to US banks, they are trading at a good discount. Canadian housing market collapse concerns have been unfounded. Their move out of Caribbean markets was positive.

Any big Canadian bank is fine. It's consolidated a lot. It's underperformed its peers, but now it's ready to break out and will make up lost ground. For once, he doesn't need to chase it. (Analysts’ price target is $78.13)

(A Top Pick Nov 30/18, Up 10%) Still likes it. He thinks people misjudged the company simply because it’s not a pure Canadian play. More a play on central and South American play. It has one of the highest dividends for a bank.

Your Canadian bank holdings and weighting? He owns TD and BNS (and RY), slightly overweight the TSX, because they are good income stocks and offer good stock through a diversity of businesses and earnings, regardless of the economic cycle. Only fools short the banks.

He owns BNS and has for a while. It is the least Canadian of the big 6 banks in Canada -- holding the least amount of assets in Canada. They have large holdings in Latin America and elsewhere. He holds US banks for exposure there.

If not banks, maybe utilities? He would continue to hold Bank stocks. Utilities could suffer if we continue to have a "normal" market and interest rates begin to rise. He does not have a holding in Canadian banks, they hold US banks, insurance or mortgage companies. Yield 4.8%

It has lagged due to issues with its foreign assets. He likes the Canadian banks in general. He would rank it 2nd or 3rd in terms of the Canadian big banks.

They've been absorbing some acquisitions, including a wealth management one that's 50/50 Canadian/international. The latter will counter the soft global growth; looks pretty good. It went down last year, but will return to the low-80s. (Analysts’ price target is $77.13)

He would not take a play in any of the major banks unless you are there for dividends for a very long term. When a recession hits, like in 2008, the banks will get punished again. You might look to European banks.

Pays a 4.7% yield. They're expanding into wealth management well with acquisitions last year and enjoy improving international earnings momentum due to Chile. They're investing to improve their IT operations. Sells at a compelling valuation. (Analysts’ price target is $77.13)

It is his first Canadian bank recommendation. It has a loan to value on their uninsured mortgages in the low 60s. They can withstand a lot of pain. Their mortgage book is mostly residential housing vs. condos. You get almost a 5% dividend yield that will probably rise over the next 10 years. They will probably get a reasonable return even if interest rates never go up. (Analysts’ price target is $77.13)