How will these Trusts hold up in a rising interest rate (although I don't think rates are going much higher because Feds owe too much) crashing Market environment?
Weak hands and desperate sellers are long gone. Is this the place to be long term?
That is not what happens. If 'risk free' investments like treasuries have a higher yield, other yield investments have to trade at higher yields to compensate for the extra risk. The yields have to rise which means the unit prices come down.
Energy trusts have little to do with interest rates which will remain low for years to come anyway, You need to look at how much supply the trust has left and what price they are likely to get in the coming years for that supply.
I agree that rates will be low for years.
However energy trusts like other yield investments are definitely interest rate sensitive.
If rates were to spike (which I don't expect), yields would need to spike across the board on trusts, MLPs, REITs, etc and that means the prices would drop sharply.
Sure enjoyed getting my divi payment and while the price is down and Chinese solar companies are boasting about their great return, I know that while they delivered to the few many know that the US will never wholeheartedly be able to convert to those alternatives and while I might be like the naysayers who used whale oil for their lamps and horse and buggies for their transportation, this one I am quite sure of. Oil & Gas will be the dominant fuel for running the US for at least the next 100 years. If their is an Thomas Edison or Henry Ford working on transforming they are more likely believing that nuclear has an much better chance then wind or solar. Still too many distrust because of Asian events in Japan and who knows in China and Russia? The powers of supply and demand will cause rates to rise simply because Washington can't stop spending and learn how the economy actually takes off. They are like the River in Egypt! You know DENIAL!