Canadian Banks

Quote from stefan_777:

Yes definately. But who says the U.S financials can't get beaten down even more? And of course, the Canadian financials will likely follow the same direction as they have since this mess started. Even though they may have no part of it.

What I meant was ridiculous was that the U.S financials decide the direction of Cnd bank stocks. As a Canadian myself, knowing how strong our banks are, it pisses me off, but as a trader, I really don't care. I'm trading what's happening, not what ought to be happening.

haha I don't even trade CND stocks anymore, G.L guys. Look's like you had a good day.

Edit: Did I get myself into a thread with investors, or traders? I'm guessing the former, so have a good 10 years guys.:D
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While Canadian banks are correlated to the movement of American financials, they do not move "in step" as you have suggested. While Canadian banks have been hit hard, they have not been hit NEARLY as hard as the American top financials. I see little downside risk at these levels, with large upside potential. To answer your question, I am buying at these levels with expectation of profit by 2010.
 
Unrelated to trade strategy, but more the business environment/fundamentals - I spoke with someone a few days ago at Scotia Capitals (BNS) derivatives dept. and they said they were thriving in this environment. They used to have to jump through hoops to get hedge-fund business for certain swap contract services since they're a Canadian bank (total return swaps in particular), but since none of the other banks have enough of the money needed to outlay for the hf's to enter these positions they've been cleaning up.
 
Quote from Kassz007:

While Canadian banks are correlated to the movement of American financials, they do not move "in step" as you have suggested. While Canadian banks have been hit hard, they have not been hit NEARLY as hard as the American top financials. I see little downside risk at these levels, with large upside potential. To answer your question, I am buying at these levels with expectation of profit by 2010.
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Yeah, sounds like a good plan.

I meant that in general, CDN bank stocks swing in the same path as the XLF, but not in the magnitude of course.

My point is that I'd be frustrated to get long into a CDN bank IF the U.S financials have more downside to come, they are good banks, but fear is fear. I wouldn't approach them as if they're decoupled. But anyway, that's all irrelevant in the long run, so good luck to you sir.
 
My personally biased against owning CM (CIBC), just don't like its track of records. Anyway, my favor are BNS and RY, both are very solid companies so far (don't know when they are going to blow up, lol).
 
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