CWB: Upside Canadian Bank; Look Hard for Value in 2020CWB is mostly an "unheard-of" Canadian bank, but still 'big enough' to offer shareholders decent gains and capital appreciation. In-fact, it ranks as one of the top consistent dividend hiking companies with a streak spanning near 30 years - far better than any other bank in Canada/USA!
2020 will be a year where looking for value will be harder and harder as P/Es approach a whopping 30-50 on average for many companies, and P/Bs surge into double digits.
Some of my top value stocks include CWB, CU, Canadian Energy (SU, CNQ, ENB, TOU) and US Energy (FANG) and many precious metals stocks (or etfs, or the physical).
With low interest rates here to stay, I am not big on the financial sector, however, I believe investors will slowly realize soaring government debt will remain a disaster and never be paid back - as such, yields will rise, DXY will fall, precious metals and commodities will rise, and treasury influxes will decline. This should keep financials relatively stable in 2020 with perhaps a 5% gain (after we get out of the 2020 early short). This will also be the catalyst to let precious metals soar from 2020 and onwards, and allow energy stocks as a whole to rebound quite heavily in 2020/2021.
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Happy New Year Everyone! Invest smart and look for value.
- zSplit
