If Not Banks, Then What?

Veritas' Anthony Scilipoti and Sam LaBell discuss various pockets of opportunity and strategies that they believe will perform well in the upcoming year.

One area of particular focus was why our funds are underweight Canadian banks. Key risks include:

  • Funding mix and rising deposit costs;
  • Mortgage rollovers and interest rate pass-throughs;
  • Weakening credit conditions;
  • A potential turn in the economic cycle

They also discuss sectors and some stocks they like.

“We’re significantly underweight banks. We have no insurers currently,” Anthony said. “Where we are actually overweight is in names in consumer staples, utilities and REITs. It’s interesting when you step back and think about these relatively boring sectors, the risk-return tradeoff is quite significant.”

Please also download the slides from the webinar.

DISCLOSURES