MLPs Flying Today

Wow–talk about flying. MLPs today as a group are up 3% and some of the pipeline companies are up over 20%.

While we don’t hold much in terms of energy we do have a few hundred shares of the Alerian MLP ETF (NYSE:AMLP) and it is up a nice 3%. We also have a small position in Enbridge Energy Partners (NYSE:EEP) which is up 7%.

The Federal Energy Regulation Commission (FERC), which had changed a rule in March from allowing to disallowing pipeline MLPs from adding a fee to their services for income taxes (which meant MLPs were slaughtered at that time), has now reversed the ruling.  Pipeline companies can now add a reasonable fee to recapture taxes.

Sometimes an investor just gets ‘lucky’—sometimes luck is better than any skill.


2 thoughts on “MLPs Flying Today”

  1. Tim,
    I’ve always said that “the market”, just has to many moving parts to reliably predict it’s direction as a whole, or in respect to an individual selection. Thus, I will take the “luck” vs “skill”, any time I can get it. This was one of those times. Patience is also a factor that does not require “skill”, but is sometimes difficult to master in the heat of battle (volatility). Thanks for your work.
    Ward C

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