This is not a stock for traders... in and out in 30 days is not the way to play this one.
If you are a Cramer fan, you should not play in the MLP sandbox. If you are in the market for way-above-average dividends/distributions/yield on investment, and if you can stand capital risk, then MLPs are a worthy candidate. No telling how this will play out in ten or more years. I am not happy with results in the last twelve months, but I don't believe that it is time to stampede toward the exits.
Just my opinion, but there is an advisory service named Valuentum.
In the recent past, they have put out some really negative reports on the entire MLP field. It happens to coincide with severe down days for the entire MLP universe. I don't know if these guy are a mouthpiece for the shorts or if they have altruistic motives. In either case, the correlation is there. Maybe there is a causal effect here?
I am as worried as anyone else. These are supposed to be low volatility investments - relatively safe (as far as stocks can be, anyway.)
I've been in MLP's for over twenty years... have not seen this before. Worried - but still holding my positions.
Interesting numbers you mention here... have not heard that social program cost before. Do you remember where to read up on this?
Footnoter - I had an impression that they were not allowed to buy it back on the open market, and were required to call it at par if they wanted to redeem. This would keep a bad actor from issuing Pfd, driving the company into the ground, and buying back on the cheap. Am I wrong here?
Books on human behavior describe an event like this as capitulation. The weak hands have lost their nerve - there's blood in the streets - and only the long-term owners stick around.
All MLP's are up big-time today. Let's hope it holds.
Beware of the spammers and touters. This guy is one of those. Joined Today - about twenty posts about the current stock he is pumping (and dumping).
I'm a long-time owner of ETP and nine other MLP's. Some of these are in my IRA.
I do not buy a large position in any of these in my IRA because of the UBTI issue. I figure if I don't have a large position in any of them, then the chances of going over $1000 UBTI in any single one is minimal.
Here's the question: If you have an MLP that has consistently shown a loss on this line, is there a carry-back provision to reduce the effects of a weird (positive) year?
The accounting on MLP's is almost impossible to grasp. I do understand the reason for the UBTI provision, but I can't transfer the reasoning of the tax law to something I can understand from an accounting view.
There's a wealth of information included with all of the MLP K-1s, I receive. I've been under the impression that you could calculate your basis with the info they give.
Am I mistaken here? I've been in MLP's for about 20 years, but have never sold one so far. I'm in the "Death do us part" camp, but things can change.