RE:.... Shaw Comm. pullback targets BCE, BNS
"What are your pullback targets for BCE and BNS?" -aprovocateur
The Red tries to answer: Good questions! Sorry for taking so long to reply but frankly I had trouble finding answers.
In relative terms, if there is a noticeable pullback/correction, I would expect ScotiaBank to correct much harder than BCE. I reckon that BCE will be a better hold through choppy times if the economy and markets go sideways for a few years.
I looked quickly at BNS valuations and reckon that BNS and similar chartered banks could pull back as much as 30%-40% in a worst case scenario. May not happen. If dividends are not cut--likely--then the pullback will not be as severe. In the background, I expect inflation to remain low and stable.
One can sit in a lot of cash waiting for a correction that may not come for more than a few months, or one can sit in companies like telcos and pipelines (don't own any, only own explorers & producers) and then when the market corrects, at the appropriate time sell some or all of the telcos, pipelines and similar to fund purchases of cheap, promising stock be they banks, energy or material companies. Or who knows? Even auto suppliers and pulp & paper companies may evolve into screaming buys at some point.
If it is not sufficiently apparent, I'm still a big bull on the secular emerging economy/commodity bull market super-cycle. The interim pauses and corrections can be real killers or opportunities depending.