Another Quiet Day in Markets

Once again we are having a day without much noise–at least in the equity and bond markets.

Today no matter which channel we turn on for background noise all we hear is Trump/Putin talk.  We don’t really care to hear this ongoing drone from everyone–we just turn the channel–or better just turn the tube off and crank up some music.

We do notice some individual issues getting smacked around–like Netflix.  Once again it makes no difference to us.  We so seldom own common shares that we are becoming hardened to movements in common shares—we only care about those 500 or 1000 point moves in the DJIA that have the potential to drag down all issues–including the issues we own.

We did make a tiny purchase of the new Energy Transfer Partners 7.625% fixed-to-floating rate preferred (OTC:ETPZF)–and by tiny we mean 100 shares.  We could add in the future, but as most know we are not really buyers of perpetual preferreds, although we are becoming more open to tiptoeing into a few.

Interest rates today are doing absolutely nothing.  The 10 year treasury has traded in a range of less than 2 basis points today.  The dog days of summer are certainly here.

11 thoughts on “Another Quiet Day in Markets”

    1. Yes, it does. Buy it in an IRA if you don’t want to have to fool with the K-1 paperwork, IMHO.

    2. Yes–as Grant responded it does have a k-1 and while I seldom buy much for MLP related issues (IRA or otherwise) I have thus far never had to worry about it at all–I just toss the k-1. As long as unrelated taxable income is below $1000/year it is not a problem.

          1. I wonder if this requirement for submitting the T form includes Preferred stocks of MLPs? Those which show a single interest payment on their K-1?

            I own CORR-A in my IRA, and if this requirement applies and my broker charges me $300, that kills the entire profit I could ever see from my small position.

            maybe best to sell and not have this possible monkey on my back?

        1. Amy, can you please tell me if the income from an IRA from a partnership is less than $1,000 a year would have triggered the $300 fee from Fido ?
          Thanks in advance, John

          1. I have just called Fido premium services. They do follow the $1,000 limit rule before they would file that awful form and charge $300 in 2019, according to Jeff at FIDO.

          2. Hi John,

            As I mentioned on SI, there are 2 different issues that were being discussed on that thread:

            1) *annual* reporting which involves the $1K UBTI issue…

            Versus

            2) reporting requierments upon the *sale* of an MLP. It is the *sale* of an MLP that gets complicated. See the link in my more recent post that provides several scenarios involving cost basis, etc.

  1. Good Link Amy, its one of the reasons I stopped holding MLP in my IRA years ago.

  2. I posted this on the SI forum so most of you have already seen it.

    I found it very helpful because it gives several mathematical scenarios/examples. ….even though it made my head spin.

    2018 Tax Guide to MLPs

    https://www.forbes.com/sites/baldwin/2018/02/14/2018-tax-guide-to-mlps/#3af6e150400b

    See this part of Example #6:

    “It’s up to you to remember that you have $6 of suspended losses to draw on; the K-1 probably won’t tip you off.”

    *I* am supposed to keep track of suspended losses??

    A member of SI posted that his Turbo Tax software keeps track of it.

    I just hope that my accountant understands all of this …..and is keeping track of it…..but I need to check with him.

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