Archive

Week Thoughts: MLPs Can’t Win For Losing

03Dec
MLPs declined for the week overall after serious de-risking Monday and Tuesday, followed by one glorioius day on OPEC Wednesday, then we got choppy trading the rest of the week.  MLPs finished the week 2.1% higher than Tuesday’s close and finished positive on Friday, but the sector has underperformed other commodity beta stocks in the short sample size

Week Thoughts: Stepped Over

27Nov
The MLP Index finished the week flat overall, despite big declines from SXL and ETP (13.1% combined index weight), and a 3.5% gap down in oil prices in brief trading Friday.   The broad stock market grinded higher, interest rates stopped going up, and natural gas prices soared back above $3.00. If OPEC doesn’t continue to wreak havoc on oil

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