Bank of Nova Scotia T.BNS

Time to accumulate

[BiggyG]

Nice dip in the SP recently

[FiddyFiddyOddzz]

Banks are takin' it in the ar$e these past few days... Biggy G wrote:"Nice dip in the SP recently"

[BiggyG]

True they are at the moment. However with Trudeaus big housing stock promises the banks will be doing the mortgages not to mention rate increases so it could be a bonanza for the banks looking forward imo

[FiddyFiddyOddzz]

I was under the impression the higher interest rates go, the more money banks make.  Given today was the first time in 22 years the Bank Of Canada had raised rates by 0.5 %, I expected a decent jump in stock price but that didn't happen...   Biggy G wrote:"True they are at the moment. However with Trudeaus big housing stock promises the banks will be doing the mortgages

[BiggyG]

Has me stumped as well Fiddy

[Quintessential1]

They can make more money on loans and mortgages but there is also moe risk of creditors defaulting on those loans and mortgages because of an inability to make the higher payments.  JPMorgan just put aside $1B for potemtial loan losses.  That is $1B that they cannot loan out and make money on on top of the potential non-payments and loan losses.  JPMorgan is an American bank and

[BiggyG]

I expect this to be a very short term problem. My money (literally) is on Canadian banks over the next few years, we will come out of the gates full out running based on my research/gut plus we get a nice Divi for holding. When that gate opens is the $64,000 question. GLTA