Royal Bank Of Canada And Toronto-Dominion: Is The BOC Blowing Up The Housing Bubble?

Summary

  • The BOC is getting more hawkish due to inflation remaining well above the target range.
  • Some investors fear that this will hurt banks due to a potential housing market slowdown.
  • The Canadian housing market is not comparable to the US housing market. Risks are not at all comparable to the US 15 years ago.
  • Low valuations and high yields for RY and TD make for an attractive combination.
  • Looking for more investing ideas like this one? Get them exclusively at Cash Flow Club. Learn More »
house is caught in a bubble - 3D-Illustration

S_Bachstroem

Article Thesis

The Canadian central bank, the BOC, has recently increased its hawkishness when it comes to its goal of clamping down on inflation. That has increased worries about downward pressure in Canada's housing market, which has, in turn, led to share price declines in the

Is This an Income Stream Which Induces Fear?

image.pngThe primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, but the income stream remains consistent. Start your free two-week trial today!

This article was written by

52.55K Followers

Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TD, RY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About RY Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on RY

Related Stocks

SymbolLast Price% Chg
TD
--
RY
--
TD:CA
--
RY:CA
--