Stock Market dip today - all major banks are down
The TSX was down by just over 200 points (around 1.5%) today and all the banks that we have been watching were down as well. Here is a repeat of the chart that I ran a few days ago (click chart to enlarge):
You can see that the current yield has increased on all five stocks, moving from the 3.12% range to the 3.15% range for the four on the right. BMO is still out of step by about the same amount because almost all the banks were pulled down by its news. It is creeping toward a 4% yield and will reach that if it hits $68.
The commentary I have seen seems to be emphasizing the reasons that the markets could continue to go downwards. Maybe our buying opportunity will be coming soon!!
BTW, be sure to read the comments on Friday's post if you are following these banks. Lots of very smart bloggers have contributed and sometimes there is better material in the comments than the posts! :)
7 comments:
A summary of new research recommendations & target prices of the Canadian banks by RBC can be found at http://financialsector.blogspot.com
At what point does BMO become irresistable to you? What yield?
Does such a point exist?
Check out my blog, I have included your site as a blog that I read.
http://themoneygardener.blogspot.com/
Anon,
Thanks for the tip - there is a lot of information on that site!
Gardener,
I think every stock has an "irresistable" point unless the company is going bankrupt. :)
BMO isn't there yet, IMO. At $68 it yields 4% - could be a magic number for some. At $63 it becomes the cheapest P/E major bank stock (if the others stay where they are), in addition to yielding 4.32%. That starts to look mighty appealing. Maybe irresistable even? This isn't an exact science, unfortunately.
BTW, welcome to the PF blogosphere! I will look forward to seeing your site grow... :)
MD
I think around $68.40 will be a major resistance point for the stock (3.98% yield)
Things could get interesting if the entire sector gets a bit of a downturn, which may have or may not have started today...we'll see...
Thanks for the comments re: my blog, hope to see you there at some point.
With some more negative press about BMO today (further losses to their portfolio), I think that BMO has more down side to go. Keep an eye on it, like I said earlier, when a stock gaps down on high volume, it "usually" will go down further. I may pick up some more when it gets cheap enough.
Holy smoke. I didn't know BMO did a "V" today and nearly touched $68.
FJ,
Yes, I was watching it at that time and it was pretty startling! I think there may be more interesting times ahead...
MD
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