David Rosenberg Bullish on BanksI was just looking through some news articles I had set aside to read when I had time and this morning is that time. I came across one from the G&M dated November 12,2020. The title is "It's time to get bullish on Candadian and U.S. banks". The three major points are:
1. The new vaccines have arrived sooner than expected and have allowed the banks to reduce credit loss provisions and that flows into future profits.
2.The valuations of banks have rarely been cheaper. They have recovered a bit and there will be a rough patch until the virus restrictions are lifted but the value remains.
3. The banks are great for income investors as well yielding 4.9% in Canada.
All I see with LBS is that this means the value is there for stability if not an increase in valution for the stocks it holds but also the feed of dividends will be stable. Plus the banks have the potential of raising their dividends as soon as the OSFI will allow them to.
This could be the beginning of a good run.