Investing

shorting Canadian Banks

  • Last Updated:
  • Oct 31st, 2017 6:56 pm
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Sr. Member
Oct 21, 2014
648 posts
437 upvotes
Burlington, ON
leflower wrote:
Aug 23rd, 2017 2:48 pm
TD will never make me cover as have more than enough other positions to cover this.
dlhunter wrote:
Aug 23rd, 2017 11:38 am
p.s. by the way, his screen shots are true RBC DI trading pages
Looks like the brokerage switched.. dlhunter I'm telling you this guy is not telling the truth. This thread trolled a bunch of us in to profit, so I can't get mad. I know the easiest way to tell if someone is lying is they forget the small details.
[OP]
Member
Dec 13, 2014
360 posts
106 upvotes
Hampstead, QC
brokerage is TD not RBC...anyone who has a td account can look it up and compare....anyhow, I remain short. I also love how we closed on the day.
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Dec 14, 2010
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leflower wrote:
Aug 23rd, 2017 4:38 pm
brokerage is TD not RBC...anyone who has a td account can look it up and compare....anyhow, I remain short. I also love how we closed on the day.
And the rationale again for this trade is.... ?
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[OP]
Member
Dec 13, 2014
360 posts
106 upvotes
Hampstead, QC
Rod, I have stated my reasons before...simply read.
rundown, real estate bubble, low oil, consumer debt. GL
Deal Addict
Dec 3, 2014
1023 posts
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Ontario
leflower wrote:
Aug 23rd, 2017 5:36 pm
Rod, I have stated my reasons before...simply read.
rundown, real estate bubble, low oil, consumer debt. GL
Why not short a real estate specific stock or some sort of high-risk lender? HCG was an obvious one but has been gutted now.
Sr. Member
Jun 15, 2012
794 posts
63 upvotes
MB
leflower wrote:
Aug 23rd, 2017 5:36 pm
Rod, I have stated my reasons before...simply read.
rundown, real estate bubble, low oil, consumer debt. GL
Plus
Trump says he'll probably kill US trade pact with Canada & Mexico
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
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Dec 3, 2014
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Ontario
ukrainiandude wrote:
Aug 23rd, 2017 7:07 pm
Plus
Trump says he'll probably kill US trade pact with Canada & Mexico
IF US does pull out the banks should fall along with many other Cdn stocks. I don't think they will pull out though. This is Trump softening up his opponent to get an edge in the negotiations. There's probably a chapter about it in the art of the deal
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Feb 19, 2010
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ukrainiandude wrote:
Aug 23rd, 2017 7:07 pm
Plus
Trump says he'll probably kill US trade pact with Canada & Mexico
Just another problem with Trump flapping his gums. He doesn't have the power to pull out of NAFTA on his own and he certainly isn't seeing eye to eye with Congress who do.
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Jan 20, 2016
1360 posts
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ukrainiandude wrote:
Aug 23rd, 2017 7:07 pm
Plus
Trump says he'll probably kill US trade pact with Canada & Mexico
He said a lot of bs and will say even more for sure. The problem for him, he could not really do it by his own will. The NAFTA was implemented by laws via Congress and it could not be ended really without it as well. And most in Congress are not in favor of just ripping it.

At least FOREX didn't believe it and CAD goes higher, not lower after such news
Make the Trudeau drama teacher again!
Sr. Member
Jun 15, 2012
794 posts
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Conquistador wrote:
Aug 24th, 2017 1:09 pm
Just another problem with Trump flapping his gums. He doesn't have the power to pull out of NAFTA on his own and he certainly isn't seeing eye to eye with Congress who do.
Would he even have the power to scrap it on his own? Turns out presidents do have that power and don't need Congress. NAFTA's Article 2205, which Trump cited in his speech last week in Pittsburgh, is only 34 words and simply says that a party may withdraw from the agreement six months after it provides written notice.
----
http://money.cnn.com/2016/07/06/news/ec ... index.html
---
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
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May 11, 2014
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Iqaluit, NT
ukrainiandude wrote:
Aug 24th, 2017 7:07 pm
Would he even have the power to scrap it on his own? Turns out presidents do have that power and don't need Congress. NAFTA's Article 2205, which Trump cited in his speech last week in Pittsburgh, is only 34 words and simply says that a party may withdraw from the agreement six months after it provides written notice.
----
http://money.cnn.com/2016/07/06/news/ec ... index.html
---
While he could, I just can't see it. Backing out of NAFTA would get big business, agriculture and many areas that depend on trade against him. It would cause him to further lose support that he already doesn't have. A full NAFTA withdrawal will result in a bigger backlash than Brexit was (I mean the withdrawal of England from the EU hasn't really effectively happened yet) and will severely impact the US economy. A NAFTA withdrawal would be immediate. I can't see Trump being that stupid just to keep the support of the Trump fan club while losing the necessary support that he won from the rust belt, agricultural, and trade states that moved the last election.
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Apr 12, 2012
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Toronto
Why this money manager is shorting the Canadian banks
It's going to be a revenue issue for banks down the road, not a short-term loan problem, says John Zechner, chairman and Founder of J. Zechner Associates. Zechner speaks with BNN about why he is shorting the Canadian banks.

http://www.bnn.ca/video/why-this-money- ... ks~1194728

At least someone supports the OP.
Sr. Member
Jun 15, 2012
794 posts
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xgbsSS wrote:
Aug 24th, 2017 8:00 pm
While he could, I just can't see it. Backing out of NAFTA would get big business, agriculture and many areas that depend on trade against him. It would cause him to further lose support that he already doesn't have. A full NAFTA withdrawal will result in a bigger backlash than Brexit was (I mean the withdrawal of England from the EU hasn't really effectively happened yet) and will severely impact the US economy. A NAFTA withdrawal would be immediate. I can't see Trump being that stupid just to keep the support of the Trump fan club while losing the necessary support that he won from the rust belt, agricultural, and trade states that moved the last election.
USA 18% of exports goes to Canada; Canada exports 76% to the USA.
It won't hurt them a lot.
But might cause a recession here.
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."
- Warren Buffett
Sr. Member
Aug 17, 2008
593 posts
180 upvotes
zobi123 wrote:
Aug 24th, 2017 8:10 pm
Why this money manager is shorting the Canadian banks
It's going to be a revenue issue for banks down the road, not a short-term loan problem, says John Zechner, chairman and Founder of J. Zechner Associates. Zechner speaks with BNN about why he is shorting the Canadian banks.

http://www.bnn.ca/video/why-this-money- ... ks~1194728

At least someone supports the OP.
Not a lot of conviction in his interview about being short the Cdn banks, IMO.

"What I would not own, Shopify, Dollarama ..."

"For the average investor, I'm not saying rush out and sell your bank stocks, but would I commit more money to them at this point? I wouldn't be putting more money into it. But I'm not putting money into any stocks right now" "We're short the Canadian banks... have been for most of the year. It's not been a big win in the portfolio, it's not been a loss or anything like that."

YTD Price Performance graph

One question that was not asked is how short are you vs your equity AUM? Being short could mean 1000 shares or 1,000,000 shares. That's the one nuisance people miss when someone from the street is talking.
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