I've long wondered about MLP's as interest rates begin to creep higher and crude oil, obviously, remains low. After all, they're supposedly not tied to the price of crude oil, right? Certainly 2015 has not been their "year" as the 10 year fluctuated, leaving me even more cautious but did this translate into a buying opportunity? Consider this interesting piece here by TheReformedBroker
I’m sitting at the Strip House with a wholesaler from a large mutual fund / UIT sponsor two years ago. He’s a good guy but he’s there to sell. I’m there to eat thick-cut slab bacon and shrimp cocktail. I told him in advance that I’m not a buyer, but I have an open mind.
He’s showing me an SMA (separately managed account) strategy whereby his firm’s team of experts picks the best MLPs. The pitch is that MLPs are a way to participate in the growth of energy infrastructure but without having exposure to the volatility of oil prices. MLPs, he explains, are uncorrelated to the price of oil because they a