How does the vast majority of you see what will happen to the pps at the end of the year? I am thinking that since the first of the year or more specifically since 12/09, there has been a significant gain in the pps and there should be a sell off and the pps will fall...not much but maybe to $12.90 and after most of the traders feel the pps has bottom out, they will be back in droves picking up units at a discount pps. Any thoughts from the rest of you based on your experiences with eoy stock prices?
That's true but since MLPs are mostly tax deferred by their nature anyway, I would rather keep my MLPs in my taxable account and other stuff in the IRA. That way both my IRA and taxable account are to some extent tax deferred, instead of only the IRA. The drawback is having to deal with the K-1s but I find that not too difficult with Turbotax.
As long as interest rates remain historically low, depriving investors from opportunities to earn income from cash, MLP's will hold up or even rise. You can argue that they are the best yield play available right now for a combination of reasonable safety and decent (no longer great) yield. With only about 100 MLP's there isn't much supply. I own many MLP's and they all have been popping right back up on any drop. There appears to be lots of cash looking for yield. Investors are slowly being starved out of their cash alternatives. As long as Crosstex's yield is in line compared to it's peers (including distribution coverage and growth opportunities) then I think the price will hold up because there isn't much else to buy that offers anything better.
There may also be something like a carry trade going on. Money being borrowed at low rates and invested in MLPs and anything else which has a decent yield. That's great so long as it lasts but we saw in 2008 what happens when all the money tries to get out at the same time.