Q: Like many others, I’m very frustrated with the performance of both Bell and Telus. (Bell is held in a non-registered account so could be a tax-loss candidate. Unfortunately Telus is held in my RRIF.)
Due to the decline in both BCE and T, Portfolio Analytics indicates that I'm underweight in the Telecom sector - not surprising! With such headwinds in this sector, do you see the need to replace Bell with Quebecor to stay in the same sector, or should I accept that being underweight can be a good thing?
The reason I’m considering QBR.B is because we recently switched from Bell to Freedom for our mobile phones. As well, their chart looks a lot better than either Bell or Telus.
Would you sell BCE to buy QBR.B or would you use the proceeds to buy into a sector with some tailwinds?
What sector(s) do you feel have tailwinds going forward?
Your comments are valued greatly. Please deduct as many questions as you see fit.
Due to the decline in both BCE and T, Portfolio Analytics indicates that I'm underweight in the Telecom sector - not surprising! With such headwinds in this sector, do you see the need to replace Bell with Quebecor to stay in the same sector, or should I accept that being underweight can be a good thing?
The reason I’m considering QBR.B is because we recently switched from Bell to Freedom for our mobile phones. As well, their chart looks a lot better than either Bell or Telus.
Would you sell BCE to buy QBR.B or would you use the proceeds to buy into a sector with some tailwinds?
What sector(s) do you feel have tailwinds going forward?
Your comments are valued greatly. Please deduct as many questions as you see fit.
5i Research Answer:
This question from today discusses the sector and offers alternatives. In Canada, sectors with a better outlook include tech, industrial, materials, and consumer disc., and probably more. The Canadian sector, despite its oligopolistic nature and government protection, continues to suffer with high capex and low demand growth. QBR.B looks better, but it is significantly smaller. We would prefer the alternatives discussed in the question referenced above.