Unloading on Certain MLPs and Commentators
First, I have a few thoughts on energy-transport MLPs, then a few more on market commentators.
Energy-transport master limited partnerships have taken a brutal beating in the latest selloff and for obvious reasons. With the latest talk of a fiscal cliff deal hanging out there, and with few revenue increases proposed (yet talk of a balanced approach being the only acceptable path), there are going to be several targets drawn on anything that can be perceived as tax-advantaged. Expect that the $5 million estate tax exemption will be shaved substantially, or that capital gains taxes will be adjusted from their current 15% -- perhaps not to represent ordinary income, but certainly higher. Leases and franchises on energy rigs and pipes are another tax-advantaged part of many of these MLPs and affect their distributions and their real yields. Consequently, many investors are running for the hills, waiting to see how it all plays out....329 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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