Brooke ThackrayHorizons Equal Weight Canada Banks Index ETFHEWB.TOTOP PICKOct 31, 2023

(A Top Pick Oct 31/23, Up 17%)

Bank stocks had bottomed in Oct 23' which made for a good buy. Relief in interest rates good for bank stocks. Strong earnings also good for stock performance. Recent share pullback good time to buy. 

Good moment to buy Canadian banks? In positive scenario, can expect S&P at 4700 at the end of the year which would be good for Canadian banks. In recession scenario, S&P at 3600. Question is will there be a recession? It is likely and markets haven't priced that in fully.

(A Top Pick Sep 24/19, Up 2%) The banks peaked after that, relative to the market. The end of August was a bottom. They started to break out in October. Earnings in late November needs to be good for the stock to not take a hit, from a seasonal perspective. Watching US financials.

The Canadian banks have performed poorly most of this year, but have since a sharp uptick this month. Seasonality begins Oct. 10.

Which Canadian financials ETF to buy? Do you want income or equal weight? Defer capital gains? FIE-T pays a monthly income and include preferred shares, corporate bonds and banks stocks, so it's diversified. If you don't want this income and prefer exposure and a total return swap and defer the taxation, then he suggests HWEB-T. You don't get dividends, so it's a great way to defer capital gains. But do you want to pay an MER to hold the big 6 Canadian banks?