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Tag Archives: MLP
Here is the tactical asset allocation update for July 2016. If you didn’t listen to the news all month or didn’t check prices during the month then you would think it was a pretty uneventful month and overall quite a decent month for almost all asset classes. Unfortunately, like most people you probably at least paid some passing interest to the event du jour. This month it was Brexit (or the referendum vote in the UK to leave the EU which passed by a slight majority which was a surprise to markets). I’ll just say a couple of things about … Continue reading
For my first post back I want to update the last post I did before my hiatus. On Feb 10, I posted on how well the MLP sector did in January, with it being the second best January ever, and that good early year performance usually leads to strong results going forward. Lets see what the MLP sector has been up to since then. The chart below shows the performance of the AMJ ETF that tracks the MLP sector. What a year so far is all I can say! The MLP index total return for Q1 2013 was 19.7%, far … Continue reading
Just wanted to update the January effect results for the MLP sector. As I noted in previous posts January tends to be the best performing month for the MLP sector. January 2013 ended up being the 2nd best January for MLPs ever, with a total return of 12.6% Here is an updated chart as of Friday’s close. Hopefully, you participated in at least some of that move. Now, the important point – history says that strong a strong January leads to strong full year results. And the stronger the January the higher the full year results. This should not … Continue reading
MLPs didn’t have their best year in 2012, being up just 4.8% on a total return basis, vs the SP500 at 16%. It was the first time in 12 years that MLPs underperformed the SP500. That makes me even more interested in them for 2013. Lets look at where MLPs stand today. At the end of Nov 2012 I wrote about the compelling value in the MLP sector and how they could be setting up for a nice rest of 2012 and early 2013. Also, as I’ve written in the past January tends to be the best month of the … Continue reading
We’re in the midst of a post election, fiscal cliff sell off with the stock market trying decide which way its going to head based on every single new headline out of Washington. Its usually best to avoid getting into this tug-of-war and wait until things settle out, unless you have a very short time frame. With that in mind I’ve been looking at MLP valuations and think there is some compelling value in the sector an that it is potentially setting up for a nice rally for the remainder of the year and into Q1, in particular if some … Continue reading
Kinder Morgan kicked off MLP earnings season on October 17 with a very strong report. I’ll briefly discuss the report and then discuss valuation and expected future returns for the Kinder Morgan family of companies. Kinder Morgan’s Q3 2012 earnings were very strong. The full press release is here for KMP, here for KMI, and here for EPB. A few words from the release and from Rich Kinder, the Chairman sums up the results nicely. Kinder Morgan Energy Partners Increases Quarterly Distribution to $1.26 Per Unit Distribution 9% Higher Than Third Quarter 2011HOUSTON–(BUSINESS WIRE)–Oct. 17, 2012– Kinder Morgan Energy Partners, L.P. (NYSE: … Continue reading
I love taking advantage of market inefficiencies or quirks; spinoff mispricings, CEF discounts, etc. Its one of the most entertaining and profitable of past times. I’ll share one with you today in the MLP sector and I hope it makes you some money in the future. Lets dive in. What if I told you the majority of historical MLP returns, since 1995, have come in just 4 months of the year? And its the same 4 months every year in which some key event happens. Take a look at the chart below. The chart gives it away but the best … Continue reading
I’ve been thinking about writing an income investing newsletter at some point….but haven’t quite committed to that concept yet. Baby steps, baby steps….so, with that in mind I thought I’d start out with a monthly commentary on the positions I hold or have held throughout the month. Feel free to comments and let me know what you think. For my current long positions I’ve linked to my last relevant post on the topic. Here it goes… Current long positions: EPD – my largest position and has been for quite some time. This company is firing on all cylinders. The strength … Continue reading
The fiscal cliff is coming and the politicians are going to let us drive right over it. At least that’s the drumbeat you hear in the financial news media. And with 5 months to go until the end of 2012 the drumbeat is picking up its tempo. With that in mind I thought it would be useful to take a look at what impact the fiscal cliff would have on asset classes, the likely outcomes, and the implications for investors. That’s the bad, scary news. The likely outcome of what I described above is very very small in my opinion. … Continue reading
ETFs have soared in popularity in the last few years. They are often the best, most efficient way to invest in an asset class. Closed-end funds (CEFs) are also an alternative way to own an asset class that can have advantages. But sometime these types of funds are not so great and in the case of MLPs that is certainly the case. Early in 2011 I posted on why owning individual MLPs is far superior to owning the ETFs, mainly due to taxes and fees. Well, a year and a half on this argument has only become stronger. Lets take … Continue reading