probably because the funds will lower your compounded yield by 30% or more.
Who do you think pays the fund manager fat salaries? The unitholders of course, out of the distributions.
On top of which the funds use leverage which may amplify losses in a downturn.
I agree. Does the change of season such as summer and hot weather have anything to do with a decline in natural gas companies and MLP's. Their all down but certainly not out best deal going. Buy on the dips
That's the first explaination that makes any sense "higher borrowing costs in the future," BUT these MLPs are getting hit so hard it defies any complete explanation. It seem if an MLP is in the 6% dividend range it gets hit the worst!
why the hell would you own 10!, just own an index of them at that point, i hope you own about 50 other equities or you could be in for some pain. MLP's, historically, trade for 2.% (yield) higher than 10 year treasuries, when the yield exceeds that by a fair amount, they are a buy, at 63 this one, my favorite was VERY fairly valued. Look at the chart folks, it's been straight up with pullbacks like this on occasion for 4 YEARS. don't panic, but should diversify if HEAVILY weighted in MLPs Reits etc...