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

The fact that the Fed insreased rates today should increase banks´ margins. The banks are exceptionally cheap with still very good growth rates. With a longer term view this is a cheap position.

Has totally sold off recently and is an attractive value now. He likes the Canadian banks but he thinks the US banks are better poised to increase with increasing interest rates. He is neutral on the Canadian dollar and thinks the US banks are undervalued.

ZBK-T vs. ZUB-T. ZBK has exposure with US$ and ZUB has the currency hedged. He does not love US banks however.

Probably would be a buyer. Owns ZBK instead. Likes US banks, not currency hedged, as thinks Canadian dollar will still see weakness. US banks cheaper than Canadian right now. US banks numbers pretty good today. Investors will come out of tech and will probably will go into US banks.

HHL-T vs ZUB-T: The performance has been mediocre since 2015. You're buying yield, but not getting growth. But there's nothing wrong with great yield. In ZUB, you get the opposite. Growth vs. yield: Which do you want?

(A Top Pick September 29/17 - Up 13%.) End of November to April is the period of strength in seasonality. So, they were a little earlier. But they liked the higher net interest margins. Banks is the way to benefit from raising interest rates.

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.