UNEMPLOYMENT RATE HORROR!
Sounds like a drudge headline. But the number was a disaster and the markets are reacting by imploding again before the open. Rates are falling as well as credit markets are now pointing to an ease by the fed rather then a tightening. Energy complex is weak this morning. So none of this is good. My guess is we'll see the dow break 11,000 today and we here in MLP land are heading for the bottom of the range...258-274...unless they start buying for yield.
No corporate news this morning. I have some personal issues i'm dealing with. Glory!
joseph cioffi's Source Page - Associated Content
3 comments:
Never mind the unemployment rate horror-how about the horror of owning MLP's!
Banks haven't been star performers either.
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Oil + commodity prices going down is part of the normal self-corrective action of the economy in recession and will act as a tax decrease eventually spurring consumption of all products increasing employment.
Due to wild speculation in all commodity markets (in the last year), this normal self-correcting dynamic was not in play.
Now it is.
Eventually Mr. Market will begin to price this in.
What is amazing to me is that the Treasury could buy Preferred shares on the open market of the GSEs, which would stabilize regional banks, and allow the GSEs to recapitalize... but they haven't. this would go a long way to stabilizing markets.
Oil prices are still too high and as they come down, eventually "toll takers" like pipelines will see increased volumes due to lower prices of oil and natural gas.
"how about the horror of owning MLP's!"
You think MLPs are bad?????
Try owning financials! I bought these stocks believing that they were conservative and relatively low risk. At the time they had relatively low yields.
The reality is that in this bear market their are many sectors that have done far worse than MLPs. And many of those stocks have slashed or eliminated their dividends--unlike growing distributions of MLPs. Eventually this will all end, MLP prices will recover and, in the meantime, we will have enjoyed the growing income.
From my perspective, MLP owners should count their blessings. Believe me, it could be worse.
Bruce Sherman
Oakland, Oregon
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