Sunday, October 12, 2008

Time To Buy Canadian Banks

With the banking industry continuing to be in free fall all around the world a new report has just come out that names Canada as the soundest banks in the world. As the banking situation continues to weaken around the world this puts Canadian banks in a good place. Royal Bank Of Canada is, and has been my favorite banking stock since even before this whole mess started. Their stock price has been holding up much better than most other banking stocks as well, but they have taken a hit in just the last week as the markets sunk. Still even off of their 52 week low this stock is still a buy. Royal Bank Of Canada provides a fat 5% dividend at this price level of $36.10 so this is a stock that pays you to own! While you might think it is crazy for someone to be recommended a banking stock in this environment, things will turn around eventually. There might even be a v shaped recovery if all goes well. As long as you have a long term view on things, now is the time to be buying, not selling. Concentrate on the future and you should do fine...

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