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| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
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S&P National Bond Index
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3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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MLPs: Another Opportunity to Buy This Summer |
Investing Daily - May 24, 2011 - By Elliott H. Gue
May 20, 2010, was a rough day for the US stock market, with the S&P 500 shedding over 43 points (3.9 percent)--its worst one-day drop in more than a year.
Catalysts for the selloff included an unexpected rise in US initial jobless claims, a seemingly unstoppable oil spill in the deepwater Gulf of Mexico and fears of a global financial crisis touched off a sovereign debt crisis in Europe. Concerns about the possibility of a double-dip recession also began to gain traction in May 2010.
In retrospect, investors overreacted to the headlines. The global economy wobbled temporarily, but growth reaccelerated by summer’s end. And although some EU countries continue to struggle with excessive debt burdens, the contagion never spread to the US corporate bond market; larger US companies continue to enjoy easy access to credit at attractive rates.
Investors’ overzealous selling in late May 2010 represented an outstanding buying opportunity for one of my favorite income-oriented groups: energy-focused master limited partnerships (MLP). Although the S&P 500 didn’t bottom until early July, the Alerian MLP Index hit its closing low of 284.89 on May 20, 2010. At the end of April 2011, the benchmark MLP index was up almost 50 percent from that nadir, handily outpacing the S&P 500’s return over the same period.
As longtime readers can attest, this history lesson isn’t a case of 20-20 hindsight. In the May 13, 2011, issue of The Energy Letter, Buy Master Limited Partnerships Now, I explained why the correction represented a buying opportunity. My basic rationale: Investors were panicking, though business conditions for our favorite MLPs remained robust.
A year later, global markets face a similar litany of concerns and investors, once again, have overreacted in predictable fashion. The latest spate of data suggests that the US and many other developed market economies have hit at least a temporary soft patch.
Meanwhile, debt concerns in peripheral EU economies were never resolved fully, and investors are fretting about the need to restructure Greek government debt. Their biggest fear is that the sovereign debt crisis in Greece and Portugal will spread to larger EU economies--namely, Spain and Italy.
But investors are reading too much into the headlines. With the average MLP off its all-time high by more than 10 percent, this summer marks another outstanding buying opportunity. Here are three reasons why MLPs should be at the top of your shopping list.
Buy MLPs: Credit Still Strong
Access to credit is essential for MLPs. As an income-oriented security class, MLPs depend on high yields and growing distributions--the equivalent of dividends--to drive stock prices higher. MLPs grow their payouts primarily through acquisitions or building new pipelines and other growth projects.
For the complete article.
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Income Security Recommendation January 2013 Issue.
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