Want banks? Have you looked north, lately?

Looking for another way to invest the Canadian Loonie, which I called the world’s greatest currency, in my August 6 post? (See “The world’s greatest currency? The Canadian Loonie gets my vote. And soon some of my money” http://jubakpicks.com/2009/08/06/the-worlds-greatest-currency-canadas-loonie-gets-my-vote-and-soon-some-of-my-money/ )

It’s time to take a serious look at Canada’s banks. Their balance sheets are stronger; the Canadian housing market is closer to a turn-around than that in the United States; and with Canadian regulations keeping non-Canadian competition in the country’s banking sector to a minimum, they’ve free to use their home profits to expand into the much  bigger U.S. market.

My favorite among the Canadian banks is Toronto Dominion (TD) because it’s furthest along in its penetration of the U.S. market. That meant it took more of a beating when the U.S. banking market fell into near collapse but it also means the stock has, in my opinion, the most upside.

But you can make a case for most of the big Canadian banks after they announced quarterly earnings on August 27. Read more