An informative article about how to approach Master Limited Partnerships and their role in a portfolio are outlined. Helen Kearney went a lot deeper than your average journalist looking for a quick turn story. We spent a decent amount of time going over the history, use, and issues. If you see here name on other articles, stop and read them. The whole story is here.
Lee Munson, an adviser at Albuquerque, New Mexico-based Portfolio LLC, said MLPs are the “secret sauce” of his clients’ portfolios and he invests around 10 to 25 percent of an average portfolio in the assets. But he also preaches caution. “Everyone is talking about them but this is a tiny market and it’s misunderstood,” he said. Munson recommends sticking to large cap offerings as smaller partnerships can be volatile and are more likely to cut their distributions.
So, I suggested not to commit new capital to GOOG until we see it pull back. HOWEVER – today was a big gap down. Give it until next week. We have NO idea how this will play out. Traders need to relax (they won’t) and see how things pan out.
Also – notice the the reaction on the audio when I make a comment to Maria Bartiromo about ‘whisper number’. We are overbought.
You can read the whole article here. Bottom line is that never have we been more confused on the question of inflation or deflation. I attempt to explain what the issues are and what is at stake.
Prices go down, people lose jobs, interest rates disappear and the economy crumbles. The first time we saw it in the U.S. was back in 1836 when the railroads went bust, credit was squeezed, and cash was impossible to get. The money supply shrank by 34 percent! The next era of deflation occurred during the Civil War, and the last time we experienced it was during the 1930s, and we all know how that worked out. Deflation creates an environment where there is no incentive to invest and grow anything but a Victory Garden.
Let me know if you have any comments. Feel free to post them directly on NMBJ’s website.
