Brookfield Office Properties Inc BRPYF

BPO Prefs....Another Storm Brewing?

[Carena]

Hi there,

General malaise in the Cdn pref share market...steep declines in BPO today are not too surprising given the pull back in the Pref ETFs lately.  Does not seem BPO/BPY specific.

I think there is a broader issue at play and, that is, there seems to be little demand for anything related to the TSX.  The TSX is trading in line with the IWM in the U.S. for what feels like forever now.   As Barry Schwartz tweeted yesterday, the only real pure play tech stock we have in Canada is SHOP and it has not gone anywhere since 2020.  YIKES!

Instead of "O Canada', perhaps "Go Canada"! 

Have a good day,
Carena

[SONOFFERGUS]

Hi Carena. Malaise indeed.  I continue to think that the impending cap gains tax increase is overhanging Canadian equities as a whole and it has not been fully appreciated. It's a great time to accumulate IMHO -- next Monday will be a massive up day (I expect/hope).

[Carena]

Hi Sonoffergus, You may well be spot on.  However, I just don't think there are that many substantial gains in the TSX to get ahead of the incoming rules.  I can see Canadian residents selling their S&P 500 stocks but not necessarily their TSX 60 stocks. As I have noted before, I think the problems for Canada are adding up and not sure just interest rate cuts are the magic

[SONOFFERGUS]

Hi Carena. Indeed, maybe rate relief will be cause for caution, not optimism.  Sigh. I would take the other side -- there are all sorts of taxable investors with massive gains on something where they have to weigh the tax hit now versus a higher whack in the future. Two examples of gains that have come fast, lots of holders are in the same tax boat, and may not been core holdings: BAM

[pierrelebel]

Interesting day. Until the close it appeared BPO.PR.T would recover most of the losses experienced in the last three days.  Closed at 4:00pm at $14.88 Then, at 4:10pm, RBC sold 149 shares at $14.46 (a drop of $0.42 from the last trade). Easy come... easy go.

[Carena]

Hi Pierre, I agree, easy come...easy go. I am very comfortable in my BPO positions and have been sitting tight for awhile now.   I do think the market does seem jittery but things have come so far since October. Have a great night, Carena

[Carena]

Hi Sonoffergus, I can't disagree with anything you said and it will be interesting post June 25.  You make a good point on the BAM ACB. It is probably just me, but I never believe the Bids and Asks...lol.  And yes, I own a big position in the E's. Have a great night, Carena

[Carena]

Hi Sonoffergus, Today was an all around solid day for Cdn stocks and last Monday you said.....  "It's a great time to accumulate IMHO -- next Monday will be a massive up day (I expect/hope)." Have a great night, Carena