Week Thoughts: MLPs Back Down with Oil, Everything Else

A big selloff in all risk assets, including the S&P 500 and oil, led to weakness in MLPs this week. The US 10-year rate has now dropped 43 basis points so far this year. Also, in price action reminiscent of 2Q and 3Q calls, one large MLP’s reduced outlook weighed on MLPs, but not quite as much as in 2015.  One bright spot was that several of MLPs

MLP Week Thoughts: Melting Point

MLPs finished positive for a second straight week, gaining 4.9% or 6.0% with distributions. But for a couple of reasons, it didn’t feel like a +4.9% week. First, the rally was top heavy, with the Alerian MLP Index beating the equal weight version by 240 basis points, which can happen when EPD and ETP, combined 30% of the index, are both up double-digits

Week Thoughts: Oil & MLPs Off The Lows

MLPs have now traded either up or down by more than 4% in 7 straight trading days. The last two of those days were positive, sending MLPs up 18.9% from Wednesday’s intra-day low. The late surge helped the sector achieve its first positive week of the year. Friday’s +8.4% move was the 6th best day ever for the MLP sector.  When combined with oil

MLP Week Thoughts: Buyer’s Remorse

Fear dominated across all assets this week. Oil prices dropped another 11% this week. MLPs sold off en masse as well, finishing down 9.9% this week and 16.8% in 10 days in 2016. MLPs did have a strong rally Thursday of 5.8% (9th best day ever) that appeared to be driven by short covering on a strong oil price day. But oil prices resumed their decline Friday

Week Thoughts: Kite Eating Tree Strikes MLPs Again

MLPs started the new year strong on Monday and relatively strong on Tuesday, but faded amid another crushing oil price decline coupled with an epic, coordinated global equity selloff. MLPs declined nearly 10% in two days in an indiscriminate free fall reminiscent of the decline in early December, and finished down 7.7% for the week, despite two 1%+ positive

2015 Year in Review: Debrief after Decline

Looking back is painful when stock market outcomes have gone awry. But the clarity of hindsight should be taken advantage of to improve future investing outcomes as we all strive to be better investors. In that light, we review the expectations from last year and what surprised me and all of you relative to your sentiment on key statistics. First, a

Week Thoughts: MLP Gains Hold As World Turns

MLPs looked like they were headed for the worst intra-holiday performance ever after declining each of the first 3 days this week. Then a 3.9% New Year’s Eve rally brought the index back to exactly flat for the week, which means that the 17% bounce for MLPs since mid-December has held up at least so far as we enter a brand new year. There was no

Week Thoughts: MLPs Mop Up in Garbage Time

MLPs rallied hard this week, finishing up 13.8% in just 3.5 days, the 3rd best week ever for MLPs and best week since 2008. But even with 14% in 2 weeks, MLPs are still down around 3% for December so far and down 32.6% for 2015 so far. Oneok (OKS) guidance on Monday sparked a relief/short-covering rally that was met with less selling pressure than

Week Thoughts: MLPs Survive Attack of the Cuts

In a pyrrhic victory, akin to Luke Skywalker escaping Cloud City in Empire Strikes Back despite having his arm cut off, the Alerian MLP Index finished positive for the week by 0.2%. The equal weight version tells a different story, down 2.8% and decimated by distribution cuts and distribution cut speculation.   MLPs did little to recover from the last two