Dividend investing for retirement Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bocor who wrote (10337)	11/8/2011 7:38:43 AM
From: Bocor	Read Replies (1) of 34328

What The Market Is Telling Us About MLP Valuations seekingalpha.com Every bull market eventually comes to an end. The catalysts pushing profits, dividends and share prices higher ultimately dissipate. Equity valuations become so high that the expectations built into them become almost impossible to achieve. Finally, the air goes out of the balloon. Growth slows to a crawl or shifts into reverse. Share prices start to come down slowly. Then, the selloff accelerates as investors lose heart and bail out. Expectations eventually go so low that it’s nearly impossible for companies not to beat them. At this point, the cycle begins anew on the upside. The current bull market for master limited partnerships (MLPs) eventually will end. Investors’ expectations will ratchet up to levels where almost any news is a disappointment. The massive deficit in energy infrastructure will become a surplus as MLPs overbuild to meet anticipated demand, rather than inking contracts with customers beforehand. Prospective returns on new projects will fall as capacity becomes cheap, even as capital costs rise and squeeze profits. Distribution growth will slow to a crawl, and some MLPs will slash their payouts. Finally, share prices will head lower. The bull will at last be broken. Today, however, is not that day.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next