Archive

MLP Week Thoughts: Two Steps Forward

20Nov
Optimism about OPEC and Old Man Winter swept MLPs higher this week, defying higher interest rates again to finish up 2.1%.  It was the first time MLPs traded up 2%+ in consecutive weeks since February. Oil finished the week back above $45/bbl, and the AMZ finished back above 300.  MLPs are in good shape heading into the last 28 trading days of the year,

Week Thoughts: MLPs Trumped Up…Trickle Down

13Nov
The stock market experienced shock, then awe overnight Tuesday, erasing a massive initial drop to finish up huge Wednesday.  MLPs rallied bigly on Wednesday and Thursday, trading counter to a selloff in REITs and utilities due to the sudden increase in interest rates based on the expectation of Trumpflation from the assumption of fiscal stimulus and lower

Week Thoughts: MLPs Fall Back (Again)

06Nov
The headline as the stock market limped to the finish line with another down was that the S&P 500 hadn’t been negative for 9 days straight in 36 years. In other words, we are in the midst of the longest losing streak for the stock market of my lifetime.  MLPs finished down another 1%-ish Friday, fading into the close too.  MLPs are down only 7

Week Thoughts: Oil and Equity Don’t Mix

30Oct
MLPs dropped 2.8% (including distributions) this week, the first week since May that included two days with 1%+ declines. Notwithstanding the obvious and likely reasons that MLPs sold off (falling oil prices, rising interest rates, mixed earnings, a large equity offering, etc.), it’s not uncommon for MLPs to selloff around distribution payment season. 

Week Thoughts: Early Results are In

23Oct
MLPs rallied 1.4% this week, outperforming the stock market and oil prices, which were both positive as well.  In fact, basically everything was up slightly on the week, including the US dollar and U.S. Treasuries, everything was up (except natural gas prices). MLP/midstream earnings season kicked off with KMI.  While it is still too early to call

Week Thoughts: Confusion & Delay

16Oct
MLPs bounced back with a 1.9% gain Monday, followed by 4 straight days of fractional losses to finish the week with a marginal gain.  Trading remains skittish ahead of 3Q earnings, the election and OPEC’s next meeting.  In a microcosm of what’s happened this year, utilities outperformed MLPs, which outperformed the S&P 500.  Oil, gas and NGLs

Week Thoughts: Yield Retreat No Holiday for MLPs

09Oct
MLPs sold off after two straight positive weeks, as choppy, uncertain trading continues despite what appears to be certain strength in commodities.  The interest rate on the U.S. 10 Year (down 55 basis points YTD) increased 13 basis points this week, spooking all yield-oriented investment. Commodity price strength (and a lack of MLP equity

Week Thoughts: MLPs Rise With Hot Air

02Oct
MLPs extended last week’s rally into quarter-end, with a 0.9% gain for the Alerian MLP Index.  The equal weight version of the index performed better (and MLP Indexes that don’t have FGP performed better).  OPEC helped broad energy sentiment (for once) and the first presidential debate appeared to help broad equity sentiment, but there was plenty

Week Thoughts: No Action, Positive Reaction

25Sep
MLPs snapped back hard with their best week since April, up 4.5% over last week.  Large cap MLPs outperformed smaller MLPs (EPD’s big week helped AMZ outperform the equal weight version by 50 bps).  Wednesday’s confirmation of 3 more months of current rates from the Fed spurred risk assets higher, especially those that offer income (UTY +3.4%, S&P