Banks (Canadian) XFN.TO (ETF)
ByIn the past I have written about the U.S. financials having their seasonally strong period from December/January to April 13th. The Canadian bank sector is different than the U.S. bank sector in many ways. From a seasonal standpoint, Canadian banks have their year-end at the end of October and release their results in late November. In comparison, the U.S. banks have their year-end at the end of December and release their results mid-January. As a result, the seasonal period for Canadian banks tends to start earlier – October 28th.
The risk of entering the bank sector earlier is if the U.S. banks come out with disastrous news before their year-end, banking sectors around the world will be questioned and will perform poorly. Compared with banking sectors in other countries the Canadian sector is very healthy and should be able to weather U.S. negative news.
