So I just sold my KMR and moved it to KMP. It is not cheap but this is a long term secular growth story. One that should accelerate once Obama retires and America can have our superior economic normal back.
Both do have the same identical value. So in theory I gave up so alpha or easy return. However, history suggests; that what ver drives this sustained inefficiency, widens in a market correction. It may not return due to so much institutional involvement in the MLP area now.
So a 1% premium for KMP seems worth it given relative HISTORICAL relationship and lower downside volatility. Market is up a great deal with mediocre economic news and even megacaps not meeting earnings expectations. I make no claim to be able to time the market but with all the external uncertainties, a quick correction certainly would not surprise me.
Still with defensive at rational but premium valuations and deep cyclicals like mining and energy begging how a correction would play out (if it does) would be very interesting.
Best of fortune all American Individual Investors. The OLB snarks will continue as they are never changing as they do not desire to learn.
Now now Rlp'd you are ignorant because you behavior blocks learning. Please do not put your choice of behavior on me.
K1 are no longer a big deal. The big problem is insane states like California which will take almost as much of the gain as the Feds. Which would not be bad if the political collectivists at least did something responsible rather than make political payoffs to their cornies. So sad California was a golden individualist place and now it is a hive of delusion masking corruption.
BUt the subject of the post was lowering a positions volatility and downward exposure if a correction occurs.
As I posted from WSJ the Value Line cover is an excellent way to see how cheap or expensive the market is. While PEs on the market are at median the forward expect earnings growth is not. The continuation of the sad Obama normal for three more years.
Market inefficiency is something all rational individual investors look for. So I am not surprised an irrational would take umbrage.
I make no claims of magical abilities or certification of my opinions with official degrees. So there is no reason for your current tantrum.
“These world-class formations contain even more energy resource potential than previously understood, which is important information as we continue to reduce our nation’s dependence on foreign sources of oil,” said Secretary of the Interior Sally Jewell. “We must develop our domestic energy resources armed with the best available science, and this unbiased, objective information will help private, nonprofit and government decision makers at all levels make informed decisions about the responsible development of these resources.”
A key component of President Obama’s all-of-the-above energy strategy is the availability of sound science to guide informed decision-making regarding the safe and responsible development of America’s domestic energy resources."
The real problem for a Progressive like Obama is their sound (and fury) science is based on majority will and killing dissent via dissembling abuse of regulatory power. American entrepreneurs betting their own money must be stopped and the pagan collectivists will just keep creating imaginary monsters and setting them lose praying one will fire the emotional side of fellow Americans.
I am betting on Mr. Hamm. ;-) Still no ride in the back of the truck even though spring is here. Well kinda of.