Bought Some Royal Bank

So like I mentioned yesterday--I reduced my holding in Bank Of America by about 10k bringing my position to about 18k or roughly to about 10% of my porfolio. I used the proceeds to place a position in Royal Bank Of Canada the largest bank in Canada. Here is some info on my thoughts on this trade...

Why - The mortgage market in the U.S is completely different than the mortgage market in Canada. There is not a huge "sub-prime" market and the Canadian Economy has been humming along. Which has actually caused the Bank Of Canada to most likely raise interest rates in July which was unexpected and caused the banks to give up some of their gains for the year. Royal Bank has a superiour Wealth Management arm the largest out of the Big Banks in Canada--also RY is less reliant on net interest income which is the margin deprived from deposits & mortgages than any other banks in Canada. The price drop has presented an excellent long-term buying opportunity to get into one of the best run banks in Canada.

Building a position - I put 50% of my position into Royal Bank which is 8% off it's 52 week high. I will take a wait n see approach for adding new funds depending on where Bank Of Canada is going with interest rates after it's July meeting.

What analysts think about Royal Bank courtesy of financialsector.blogspot.com

Analysts' ratings and target prices for RBC:• BMO Capital Markets maintains "outperform," 12-month target price has been raised from $62.00 to $63.00• Blackmont Capital maintains "buy," 12-month target price has been raised to $65.00• CIBC World Markets downgrades from "outperform" to "sector perform,"• Desjardins Securities downgrades from "buy" to "hold," 12-month target price is $60.00• National Bank Financial maintains "sector perform," 12-month target price has been raised to $64.00• RBC Capital Markets maintains "sector perform," 12 month target price is $64.00• Scotia Capital maintains "sector outperform," 12 month target price is $75.00• TD Securities maintains "action list buy," 12 month target price is $67.00• UBS maintains "neutral," target price has been raised from $65.00 to $66.00UBS analysts mentioned that RBC has reported its results for the 2nd quarter short of expectations due to a decline in trading, expenses associated with several acquisitions, and volatility at the insurance unit. UBS analysts expect RBC to post robust results in the forthcoming quarters, with the performance of the core global wealth management and domestic banking operations continuing to be impressive