Everyone knows that the last several years have been rough for Wall Street. The stock market weathered one of the worst recessions in U.S. history, leaving many investors discouraged and confused. We witnessed the cataclysmic failure of longstanding financial institutions and the subsequent bailout of the banking system by the federal government. What a nightmare.
MLP Investments Emerge as Winners
Despite all of the turmoil, master limited partnerships have remained solid long term investments. While MLP indices have had their fair share of volatility, they have performed well thanks to a favorable tax structure
and outstanding yields. In fact, the Alerian MLP Index sports a 10 year total annualized return of around 18% vs. a depressing -0.7% for the S&P 500! Not too shabby given the recent economic situation.
The Future of Energy MLPs
As far as the future goes, one thing seems almost certain: the U.S. demand
for energy should continue to grow over time. I expect energy MLPs will continue to prosper as this trend continues.
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