Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in April 2023. Should You Invest $1,000 In CIBC?īefore you consider CIBC, you'll want to hear this. The post Invest in This Workhorse Canadian Company for Strong TFSA Returns appeared first on The Motley Fool Canada. Though there are notable risks with the banks, I think the potential rewards make such risks worth taking on at this juncture. really derailed any rebound hopes of the banks back in March. The Canadian banks have really been under pressure over the past year. If things aren’t as bad as they seem, CIBC stock could be an intriguing value play for any long-term-focused TFSA fund. Still, I think there’s already been so much negativity built into shares over the past year. Undoubtedly, loan losses and all the headwinds that accompany recessions could weigh heavily on future quarters. The 6% dividend yield also looks bountiful and well covered. The stock is looking quite cheap at just north of 11 times trailing price to earnings (P/E). In that regard, I view CIBC, a domestic mortgage-heavy bank, as more of a value opportunity than an at-risk bank. Though higher rates will make it more challenging for those with mortgages, I don’t think a wave of defaults is coming anytime soon - at least not to the magnitude of a 2008 Great Financial Crisis. Of course, we’ve heard chatter about some sort of Canadian housing bubble for quite some time now. As employment looks to take a hit while interest rates continue to climb higher, the chin of the Canadian housing market stands to be tested. Undoubtedly, a recession could be coming to Canada. CIBCĬIBC is a Big Five Canadian bank that’s sitting down around 32% from its all-time high hit back in early 2022. Without further ado, consider CIBC ( TSX:CM). Remember, the longer your investment horizon, the better your risk/reward tradeoff stands to be. Though the following names could fare well over a near-term timespan, I think that five years may be needed for optimal results. Indeed, five years is quite a long-term horizon. In this piece, we’ll consider a Canadian workhorse that can help power robust results for your TFSA over the next five years and beyond. That way, it’ll be able to fare well, even when market storm clouds move in. With cheap value stocks that can handle the market-wide choppiness, your portfolio will be able to keep its chin down and hands up. You should be able to roll with the punches as well as dodge and weave past punches that you know will be thrown your way. TFSA investing 101: Rolling with the punches in a rocky market I like to view long-term investing as more like a boxing match. But for the most part, you don’t need to make moves to those inevitable bumps in the road. Undoubtedly, when markets begin to slip into a correction, you can always top up positions at the core of your TFSA. Instead, TFSA investors may wish to position their portfolios in a way such that they don’t need to make so many moves in any given week or month. However, it’s really hard to crush broader markets by constantly trading stocks. Indeed, you can beat markets on a near-term basis. TFSA (Tax-Free Savings Account) investors need to have a long-term focus if they seek to achieve a fat retirement nest egg. Written by Joey Frenette at The Motley Fool Canada
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