Q: A dividend account, BCE down 16,%, BIP.Un down 14.5%, BEPC down 23%, DOO down 23% as well. Also own BN and BAM. Brookfield entities are 17% of the portfolio.
Do I sell my losers, knowing they're suffering from higher interest rates or simply stay patient?
Do you see concentration risk ? How high would you let the Brookfield entities run? I think DOO is a good firm but it could go. Please deduct questions as you see fit. Thank you in advance. David
Do I sell my losers, knowing they're suffering from higher interest rates or simply stay patient?
Do you see concentration risk ? How high would you let the Brookfield entities run? I think DOO is a good firm but it could go. Please deduct questions as you see fit. Thank you in advance. David
5i Research Answer:
With BCE, BIP, BEPC and DOO we would be fine with a sale/rebuy if one wants to manage tax losses. We would be fine holding them, but none are likely to spike up enough in the short term to offset tax benefits realized. DOO is highly cyclical and has guided to lower growth. We would still see it as a HOLD but GSY or TFII might see more growth and gains. We would be fine at 15% of the Brookfield Group of companies.