Now that I sold, my views most likely bias.My rollercoaster historic view/ride on/with BPO.....
Back in 2020 when BPO shares CRASHED, I passed on buying and went for another Prefer. I couldn't "figure out" Brookfield. It gave my gut an uneasy feeling, so I passed.
Less than a year later sold those Prefers for a huge Gain.
Fast Forward to 2023.... BPO Crazy Yields caught my eye again. My gut still has this "uneasy feeling" about these Prefers but I bought because unlike in 2020 where I was able to pick up other Prefers yielding CRAZY yields.... This time BPO's yields stood well above everyone else. So I caught the falling knife sometime around June 2023. My hands gushed blood as I basically went all in.
I went on rambling on and convinced myself not to sell at a loss and came to the conclusion that it all boils down to........
Will BPO/Brookfield default or not? It's either YES or NO. If, NO, then I'll be collecting CRAZY dividends and basically it didn't matter too much if I don't get my 100% gain on share price and I'm "stuck" holding and becoming a long term investor.
I was down about 30-40% at one time but I held. The juicy Dividends Rolled in.
As time went on, I kept on trying to "figure out" Brookfield. I'm still confused about Brookfield and it's structure. I still have that same feeling in my gut as I did back in 2020 when I passed.
Again, it all comes down to.... Will Brookfield default or not? I came to the conclusion it all depends on INTEREST RATES. U.S. interest rates. What the FED does.
I'm a bit of a Crazy Nut with all kinds of Conspiracy Theories. For me I believe the FED are the "EXPERTS", it's their game after all, they hold all the keys. So, back in 2020/21 when the FED came out saying inflation will be "TRANSITORY", immediately a RED FLAG went up for me. Time went on and RATES continued up and up and up.... ALL while we were lead to believe "Transitory"... and rates will coming down shortly.
Second RED FLAG went up when FED held rates while everyone else started to cut.
It's been over 3 years we were lead to believe rates would be coming down, but instead they went up over those years. Brookfield and many others bleeding RED.
FEDs didn't follow the other Central Banks. A BIG RED FLAG.
I sold.
Again, I think it all comes down to what the FED does with interest rates that will determine if Brookfield will default on BPO or not. I don't know what the FED plan is, but I don't believe what they say, I only believe what they are doing. With that, with the FEDs "going it alone", I see the RISK increasing.
I'm out. I'm out with HUGE GAINS, but not my 100%er. It's ok, I'm sleeping better and still making good yield on basically Risk Free investment. Is 4% extra yield with BPO worth the risk, to me not anymore, I see the risk increasing.
In summary, with all my ramblings, I guess ACTION tells the TRUE feelings that I have when, all my flip floping..... WHAT DID I DO? I sold now.
With that said, I have a history of selling too early and watching shares rocket up.
All just my opinion/view/thinking/doing/where I stand now. The Feds held, for the years they been leading us to believe rates would be coming down, their ACTION says otherwise.