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08:10PM (15 mins delay)
Oct 27, 2009 - 10:05 AM EDT
Avi Morris submits:MLPs keep roaring ahead, taking them to new yearly highs. It seems like we're in a new world when remembering last October. I had just written a primer article on MLPs, introducing many investors to a new type of investment. That was at the start of September, after MLPs had already fallen 20% from their peaks in the prior year (along with other market averages). Then they plunged and by October it looked liked they were heading for zero. Risk averse was the driving force in investment thinking, all securities with high yields were being thrown away without regard to their investment value. The collapse of Lehman (LEHMQ.PK) in September made matters worse for MLPs because they had been a big believer (and investor) in MLPs. MLPs went through an awful 6 months as yields shot up to over 15%. But believers were rewarded.
From their lows, MLPs have rebounded sharply. The Alerian MLP Index (AMZ) at 265, is up a dazzling 100+ points from the lows in March. Aside from a modest setback in June and settling into a trading range during August-September, the rise has been about as steady as could be hoped for. In October, the index is up 10% from the low of the latest trading range.
Source: Seeking Alpha (Oct 27, 2009 - 10:05 AM EDT)
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