My concern is buying BN after such a run.
Is there room for this run to continue based on its valuation?
I have found in the past you just buy the good ones and let them do what they do.
Is that the case here again.
Thinking of switching GSY for EQB for perhaps a little more stability and eliminate the risk of that interest rate cap adjustment potential.
Your detailed thoughts pls.
BN is significantly larger and more diversified than EQB, and we would prefer BN in a straight-up contest of the two. It can be difficult to buy after a run up, and BN has been unusually strong this year. But it has also made and is making positive corporate moves, and has a giant amount of capital available. We would be fine buying it today for the long term, but also a half now and half later strategy would also be acceptable. Much depends on timeframe. If the plan is to own for five years, we would not really be too concerned about perfect pricing now. There is room for it to go still, but it will still be sensitive to overall markets and rates and sentiment. EQB is a bit cheaper than GSY on valuation, with a lower dividend yield. We are not particularly concern about lower rate caps but of course anything is possible in the US now. The majority of GSY's revenue/profit is still Canadian-based. We like EQB certainly, but would consider GSY as having more upside potential from current levels. We would not object to a switch but this should not imply we dislike GSY currently.