Silicon Investor (SI) -- The First Internet Community

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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (39669)	10/16/2010 5:05:45 AM
From: Walter Bagehot	1 Recommendation Respond to of 78470

EKS - you should read Albert Edwards (SocGen) and his view on what will and won't work, with comparison to the Japan situation. Personally, I think he is OTT as a perma-bear, but he does have some valid points. The US has a far brighter outlook with a younger population and strong immigration that saves it compared to us in Europe.

To: E_K_S who wrote (39669)	10/17/2010 10:18:31 PM
From: Spekulatius	Respond to of 78470

I don't see what QE2 has to do with owning an MLP. if QE2 is needed it means that stated inflation rats are low. Since the fee part of an MLP is indexed to inflation (via a formula from FERC), it means that distribution won't grow to much. The low interest rates do benefit MLP's in too ways - it lowers their cost of debt and also means less competition from bonds. of course it works the other way around too - high interest rates (typically correlated with inflation) provide both a back and a headwind at the same time. The worst thing for MLP's is a credit crunch - just look at their performance in 2008 or 2002.