Public trading strategy
Market crash wipes out $1.8 trillion while Brookfield buys $1 billion of its own
Thesis
When the market panics and stock prices plunge indiscriminately, strong companies often use the opportunity to buy back their own shares on the cheap. Brookfield stepping in with a massive $1 billion purchase signals that management believes their stock is drastically undervalued by the current panicked market. This massive display of confidence acts as a financial safety net for the stock price, making it a highly attractive dip-buying candidate while others are fleeing.
Strategy approach
Build a rule-based strategy that enters long BN on the daily timeframe when the stock price drops 3% below its 20-day moving average and the VIX is above 25. Exit when the price closes above the 10-day moving average for two consecutive days, with a 4% fixed stop loss.
Markets and timeframes
BNdaily