Stock price when the opinion was issued
He rotated out a few weeks ago. Seeing recent weakness in financials (with $$ also coming out of industrials and consumer discretionary). Chart shows a fairly major breakdown of support ~$78. Now the stock is rolling back up, so it's looking more encouraging. Downtrend line on the chart is ~$81-82, so we'll have to see what happens at that point.
A quality Canadian name, allowing Canadian dollars to access global markets. Their challenge is that they invest in private businesses, then sell them at a higher price. But all the current volatility has put those plans on hold. Not the end of the world--BN will continue to run those businesses.
Typically, his Top Picks include a US name, a Canadian name, and an income name. Today all 3 picks are Canadian compounders.
Brookfield is a phenomenal, high-quality company. Will benefit from current environment. Roughly $160-170B of client capital to invest. Can grab businesses that come under pressure. Easy way for you to be counter-cyclical, sleep at night, they do the work for you. Yield is 0.7%.
Gets you into the private equity world of alternative investments, without having to hold a mutual fund. You get more liquidity in an individual stock, along with potential growth of M&A. US deregulation should enhance M&A activity, especially if the Fed cuts another half a point. That's why it wanted to move its head office to New York.
(Analysts’ price target is $89.02)Good allocators of capital. Only issue is that beta is higher, so stock price will be more volatile. Good hold for growth over the long term (whereas BAM provides income to retirees). Yield is 0.5%.