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

This one equal weights US banks. A great way to play the US housing market without actually buying property in the US. If you think the US housing has hit bottom and is rebounding, the banks are ones underwriting this and they should be more profitable as the housing sector rebounds. 1.47% yield.

Likes having a whole basket of banks. Not confident in picking individual banks. Likes the whole sector. Monetary policy is still pointing to increasing house transactions. He is looking for more solid momentum on house transactions.

Likes this one because you are getting all the big US banks. He particularly likes that it is US$ hedged. Good choice. The one thing he cautions on the US banking sector is that even though they paid a lot of penalties of late, he thinks there are an awful lot of class-action lawsuits waiting in the wings.

Historically the seasonality for US banks is right around the end of the year right through until around April of each year. Seems to be forming a base right now so you’re getting very, very close to an important low point. You might want to ease into this trade in the next couple of months.

US Banks. In the last couple of weeks there are massive lawsuits over the last couple of weeks. He's be awfully careful in that sector. Illiquid but ETF providers can just create units. It's not a big deal.

(A Top Pick Sept 30/11. Up 47.62%.) They were deeply oversold plus there was so much bad news surrounding them and you had to know the fed would not allow that.

(A Top Pick Jun1 1/11. Up 0.41%.) Nothing will benefit as quickly from a rapid recovery in the US housing market than regional banks in the US. He continues to be currency hedged and the big decision in the next 2-3 months will be when to take these hedges off.

(A Top Pick Sept 30/11. Up 35.55%.) This was basically a call on the banks. They were oversold. Still likes them.