Lee notes a divergence between U.S. and Canadian financial markets, with U.S. institutions faring better due to a more robust economy, while Canadian banks face stress, particularly in the mortgage market. The discussion also touches on interest rate movements, their impact on Canadian banks, and the outlook for rate cuts. Additionally, they address TD Bank’s recent challenges, including a significant penalty related to anti-money laundering failures, and discuss TD’s market performance amidst these issues. Despite setbacks, Lee believes TD Bank’s valuation provides ‘suppressed’ value in addition to a strong fundamental Canadian franchise.
TD Bank’s Setbacks and an Update on the Financial Sector
Recorded on September 6, 2024
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All securities and financial products or instrument transactions involve risks, including the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk. This content may contain forward-looking statements, including statements regarding our beliefs on current expectations and market conditions. Readers are cautioned not to place undue reliance on these forward-looking statements. TriCert Investment Counsel Inc. does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside TriCert Investment Counsel Inc.’s control. Past performance is not a reliable indication of future performance.
Lee Grimshaw, CFA®
Lee joined TriCert Investment Counsel in 2019. As a Portfolio Manager, Lee focuses on advising individuals, households and corporations on suitable investment decisions to meet their financial goals. Lee is a member of the finance sector research team and works closely with the financial planning team and accounting partners to provide investment advice.
