Q: In an earlier question asking whether it would be wise to buy atz now, you said you would hold if you owned it or wait till the dust settles, if you don’t. I have been thinking about taking a tax loss on it. The idea was to buy it in my rif, wait one month and then sell it in my non registered account. A lot can happen in a month, though, and i hesitate, wondering whether i should buy a place holder. I am a bit leery of Canada Goose, though. Perhaps i don’t even have to be in that sector for a place holder. Wondering about your thoughts on this?
Thanks as always
Thanks as always
5i Research Answer:
We do not really think ATZ is going to stage a big recovery in 30 days, so we think a tax strategy makes sense. GOOS or LULU could work as proxies, but if one has an otherwise balanced portfolio we think one can just sit the sector out for a month without a proxy. Yes, much can happen in a month, but with earnings out already for many companies and being summer we would be surprised if there are a lof of fireworks.