Imminent breakout? Swing trade potential Brookfield looks like it may have bottomed, held support very well at $25 and is about to break this descending channel to the upside. It’s reached the value area high of the local range and about to break out of this consolidation area, to the upside. I’d like to see it break out of the wedge as confirmation.
What else can Brookfield offer for a longer term investor?
Brookfield’s dividend is stable and attractive, particularly in an interest rate-cutting cycle. As bond yields fall, dividend stocks become more appealing, and Brookfield’s diversified cash flows from long-term contracts in infrastructure, real estate, and energy provide the security needed to sustain or even grow dividends.
Strong Moat - Brookfield has a well-established moat due to its global portfolio of infrastructure, real estate, renewable energy, and private equity assets. This diversity across sectors and geographies creates resilience in different market environments. Additionally, Brookfield's expertise in managing and operating these assets, along with its ability to attract significant institutional capital, gives it a competitive edge that is hard for competitors to replicate.
Business Cycle Positioning - Brookfield is well-positioned in the current business cycle, especially with a potential for lower interest rates. As central banks cut rates, the cost of financing large infrastructure and real estate projects typically decreases, which can boost Brookfield's profitability. Moreover, their focus on long-term, stable investments in essential services like infrastructure and renewable energy makes them more resilient during economic downturns, while still offering growth potential in upturns.
