Recent MLP tailwinds (oil prices, lack of equity issuance) reversed this week, pumping the brakes with a 1.9% decline after 3 weeks of outperformance. The move this week reversed last week’s 1.9% Read more »
Will MLPs finish 2017 with higher return than S&P 500?
- No (62%)
- Yes (38%)
Total Voters: 167
The MLP Index finished the week decisively above 300, up 9.9% from its recent (6/21) low, after a 1.9% week that included a furious late Friday ramp. Oil prices rose each day of the week, including 4 straight 1%+ days to finish the week. MLPs resisted rallying for most of the week, but eventually relented. Just when sentiment was at its worst and
MLPs reversed intra-day to finish positive Friday, which when combined with outsized gains Monday, was enough to finish the week slightly positive. That makes two straight positive weeks and two straight weeks of outperforming the S&P 500 and utilities. MLP capital markets activity has been negligible for over a month now, which is perhaps a
Sweet relief came this week in the form of 7% higher oil prices that helped MLPs break a grueling 5 week losing streak. At 4.2%, it was the second best week of the year, a strong finish to a disappointing first half for MLPs. MLPs have traded up 7% since their 6/21 52-week low. Rising interest rates was problematic for utilities and the S&P 500