Investing in Bank Stocks

Ok so my GOOG option play did not work out in my favour. I could have made 10%, but held out for a bigger upside and ended up taking a hit. 'll take another crack at it when I'm done licking my wounds.

Now on the registered account side, I read an article in Business Week (11. Why Bankers Keep Seeing Bears; Mara Der Hovanesian, 13 November 2006, BusinessWeek). It basically suggested that banks are overvalued, and a correction is coming as morgage revenue moderates, high concentration of risky commercial loans becomes more of an issue, and consumer credit quality deteriorates. On one hand it sounds a bit like Chicken Little (the sky is falling.... Come, on don't tell me you don't know the story of Chicken Little!). On the other hand, CDN banks have had a great run for the past few years. RY to me seems particularly overvalued. On the other hand, HSBC Canada seems like an interesting play if corrections in bank stocks occur, due to its lower domestic exposure & focus on import / export financing & global cash management.