MLPs: Focusing on the Long Term
Sunday, January 27th, 2008
Despite the recent volatility in the markets and media focus on a possible US recession, investors should remain focused on the long term potential of MLPs. There is a good chance that the major market indices will continue to fluctuate and lose value (including the benchmark Alerian MLP Index). Even so, midstream transport and services will continue to be in demand regardless of commodity prices and market conditions. Further, the fact remains that MLP distribution yields remain competitive and continue to grow. Over the long term, MLPs as measured by the Alerian index have outperformed the S&P and the Dow, and I believe they will continue to do so for the foreseeable future.
