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Gold/Mining/Energy : KMP: Kinder Morgan Energy Ptnr -- Ignore unavailable to you. Want to Upgrade?

To: Dowjoe who wrote (7)	3/2/2005 8:05:50 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 11

No, not the tax complications, its not that hard once you understand whats going on. It's that the value of most MLPs is in their yield and in the rising interest rate and inflation environment I see coming, MLP unit prices will come down as their pay outs compete with bond yields. Also, changes in way ordinary dividends are taxed reduced the appeal of their favorable tax treatment. IMO, when interest rates are going down and the stock market is treading water, MLPs are the place to be. When interest rates are rising, you want to get out of MLPs as their unit prices are likely to fall. I kept KMP as the last of my pipeline MLPs to go because it was the only one that had combined significant growth with payout.