Canadian Banks Will Move Higher: EdgeHill's Mann

The video discusses the criteria for stock selection, focusing on valuation, price, momentum, and low volatility. It analyzes bank stocks, noting their volatility and valuation, and explains a preference for non-bank financials. The discussion extends to Canadian banks, highlighting concerns about energy loan loss provisions and a housing bubble, leading to increased short interest. The video concludes with expectations for the earnings season and its potential impact on bank stocks.

What are the key factors considered in stock selection according to the video?

• Valuation, price momentum, and low volatility

• High dividends and market share

• Brand reputation and customer satisfaction

• Government regulations and policies

Why do banks receive small investment weights according to the speaker?

• They have high growth potential

• They are neither cheap nor expensive

• They are heavily regulated

• They are too volatile

What concern is mentioned regarding Canadian banks?

• Their exposure to a housing bubble

• Their lack of international presence

• Their high employee turnover

• Their outdated technology

How is short interest in Canadian banks described?

• As a tactic to reduce risk

• As a strategy to increase dividends

• As a method to play the Canadian dollar

• As a way to hedge against inflation

What might cause banks to move higher during the earnings season?

• A rise in consumer confidence

• An increase in government spending

• A decrease in interest rates

• A major earnings surprise