Upstream MLPs Look to Get Pounded
By: Tim McPartland,
Well it looks like a tough day coming up for the MLPs. Pre-market shows issues down 3% to as much as 10%–of course the worst of the hits are being taken by the upstream players as it is becoming clearer that credit lines are going to be cut relatively soon. We would expect that both utilities and REITs are going to get slammed as well-just because they have been trading weak in the last couple of months–maybe we will get a good ‘flush’ on the REITs today.
Additionally China has a growth issue–Europe is in the normal mess and the strong dollar is weighing heavily on the U.S. exporters making the entire situation very dicey (nothing new here). Nothing has really changed–we knew about all of this last week and the week before–but this week Wall Street has decided to pay attention for a change.
Interest rates are falling this morning with the 10 year treasury down to 2.14%. This is a logical move with the crazy global printing presses running at full steam ahead.
Connect with Tim McPartland