EQB drop

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hi,

EQB was recommended in the past, and I wonder what are your current thoughts on it with its poor performance.
It drop 14% YTD and 26% since in past 6 months. Quite dramatic compared to the big banks in general. I wonder if I should sell or still hold/increase position?

Thanks

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Asked on April 14, 2022 8:51 am
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It seems like the market is factoring in the upcoming fears of a recession and what it would do to financial companies. Ultimately, rising rates IS good for banks, but if they raise them too quickly in an attempt to slow spending to curve inflation, this can certainly have a negative impact on financial companies.

This is likely what is being factored in to Equitable along with many other Canadian financial institutions right now. We can't expect a company like EQB to hold up as well as a Toronto Dominion Bank or Royal Bank. With outsized growth potential comes larger volatility.

Overall, I'm still a huge fan of EQB. In fact, it's one of the largest holdings in my portfolio. I continue to hold.

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Posted by Dan Kent
Answered on April 14, 2022 3:09 pm
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