THE FED AT 2:15PM

The fed fixation is on today so its all about 2:15pm and whether the fed takes a word or 2 out of the statement. With the 10 year now close to 3.10, what does it say about the world and the US economy? Ask yourself what kind of a world is it when someone is willing to take 3 percent guaranteed on their money for 10 years. It doesnt say good things. So many of us remember all 2 well that 30 years ago long rates began their long march to almost 15% on the 30 year. Those bonds are almost mature now (time does go by quickly). We are used to viewing the world through the prism of high rates being bad..falling rates being good. But that came off 15 years of uncontrolled inflation. It took nearly 15 years to wring out that evil. Now we are in the world as it was most of the time. Low rates are not sending a pretty picture. And if the US is the new Japan..3% yields would look attractive (Japan long rates are around 0.5 or so.). UGH!!! MLPS of course are paying to 6 to 8% with risk attached. What if we head into another downturn? Can these companies continue to grow their payouts if business slows to a crawl and demand drops? All questions to consider and ponder carefully.

Of course that is the broad picture and as we take a look at the charts we are not nearly as somber this morning. Yesterday's slow fade and then late selloff was demoralizing to be sure but the MLP index only lost a little over a point and remains above support. Sometimes the sell off catches up on the second day. Stock futures are higher this morning so it looks like we're going to undo a little of the late mess. The euro is up which is good for stocks overall. No corporate news this morning. Wunderlich downgrades Inergy (NRGY) to a hold but raises the target price on Inergy Holdings (NRGP) from 28 to 30.

So lets prepare for another trading day. Oil inventory numbers at 10:30am. That doesnt count whats floating in the Gulf of Mexico. Its a summer Wednesday so the trading pace continues to move into full summer mode. BTW we have MLP ETNs and now comes the MLP ETF. Frankly i rather not have all this attention.