Still Our Top Choice Among Banks

Article Excerpt

The worldwide credit crisis has hurt all of Canada’s big five banks. Still, we continue to have a positive view of all of them. The banks have already taken substantial writedowns, which may cover most of the damage. As well, Ottawa’s new plan to buy up to $75 billion of home mortgages from the banks, if needed, further cuts their risk. All investors should aim to own two or three Canadian bank stocks as part of a well-diversified portfolio. For new buying, we still prefer Bank of Nova Scotia. It has the least exposure of the five to the subprime mortgage problems in the United States. As well, Bank of Nova Scotia’s expanding international operations will let it profit from rising prosperity in developing countries. The bank is also taking advantage of the turmoil in financial markets to expand its domestic wealth management businesses with timely acquisitions. BANK OF NOVA SCOTIA $38 (Toronto symbol BNS; Conservative Growth Portfolio, Finance sector; Shares outstanding:…