Brookfield Asset Management Faces a Crucial Turning Point
The Toronto‑listed Brookfield Asset Management (TSE:BAM) has slipped below a key technical benchmark, triggering a wave of speculation about the future trajectory of the firm’s shares. On Monday, 23 December 2025, the stock fell to C$72.00, dipping under its 200‑day moving average of C$78.29. The drop comes at a time when Brookfield’s portfolio is increasingly exposed to high‑quality real‑estate and renewable‑energy assets, while the broader private‑credit market in Australia is becoming riskier due to heavy exposure to the property sector.
The 200‑Day Moving Average Cross
Brookfield’s share price had been trading above the 200‑day moving average for several months, a period that coincided with the company’s steady accumulation of long‑term infrastructure and renewable‑energy holdings. Analysts noted that the crossing below this moving average may indicate a shift from a bullish to a bearish trend. The 200‑day moving average is a widely respected indicator that smooths daily volatility and signals medium‑term momentum. When a stock trades below this line, investors often view the move as a warning that the asset may face downward pressure in the near term.
The price fell to a low of C$72.00, still comfortably above Brookfield’s 52‑week low of C$41.25, but below the 52‑week high of C$68.39 reached in September. At the close on 21 December, the share was trading at C$63.49, reflecting a modest decline from the previous week. The market cap of approximately C$157 billion underscores the size of the move: a decline in the share price will translate into a sizable loss of equity value for investors.
Contextual Risk: Private Credit in Australia
Brookfield’s risk profile is further complicated by the broader environment for private‑credit investments. A recent article from the Financial Post highlighted that private‑credit funds in Australia are increasingly vulnerable due to a heavy weighting toward the property sector. As the Reserve Bank of Australia signals tighter monetary policy, real‑estate‑linked loans may experience higher default rates. Brookfield, which has significant exposure to Australian real‑estate through its private‑credit mandate, could see the value of these assets eroded if the property market softens.
While Brookfield’s core strategy focuses on long‑life, high‑quality assets—real estate, infrastructure, and renewable power—the company’s performance remains intertwined with the health of the credit markets in which it operates. The risk of property‑related losses could therefore weigh on the firm’s earnings and, by extension, on its share price.
What’s Next for Brookfield?
Investors are now watching for several key developments:
| Indicator | Current Status | Implications |
|---|---|---|
| 200‑day moving average | Price below C$78.29 | Potential trend reversal; short‑term sell pressure |
| 52‑week range | High C$68.39, low C$41.25 | Price still well above the 52‑week low, suggesting a buffer |
| Private‑credit exposure in Australia | Increasing risk | Possible impact on earnings if property defaults rise |
| Overall market cap | C$157 billion | Large‑cap stock; volatility may be dampened by size |
| Price‑to‑earnings ratio | 43.70 | High P/E could amplify downside if fundamentals falter |
Analysts anticipate that Brookfield’s management will need to reinforce its risk‑management framework, particularly in the Australian market. A potential shift in portfolio allocation away from heavily property‑linked credits toward more diversified infrastructure and renewable energy assets could help mitigate downside risk. Additionally, the firm may consider deploying capital to acquire undervalued assets that fit its long‑term investment philosophy.
For investors, the crossing of the 200‑day moving average is a signal to reassess risk tolerance and to monitor the company’s quarterly earnings releases. Should Brookfield demonstrate resilience—through steady asset growth, robust cash flows, and disciplined risk controls—the share price may regain momentum. Conversely, if the firm’s exposure to high‑risk private‑credit markets materializes into losses, a prolonged decline could be on the horizon.
In the volatile landscape of financial markets, Brookfield Asset Management’s recent performance underscores the importance of technical signals, macro‑economic conditions, and sector‑specific risks. Investors and analysts alike will be watching closely as the firm navigates these challenges in the coming months.
