It’s been a rough year for many MLP’s, but a new report by Pointe Capital Management indicates that MLPs are not as poorly-positioned as they were following the Financial Crisis in 2008. In fact, Pointe sees a handful of MLPs that it believes have been unfairly punished by the market.
Not As Bad As 2008
Pointe notes that the recent decline in MLP prices probably seems worse to investors than the 2008 decline did because the 2008 market decline was widespread across all sectors, whereas the recent sell-off has occurred strictly within the energy sector. In fact, the S&P 500 posted only a about a 6.0 percent decline in Q3, whereas the MLP indices declined up to 25 percent during that time. However, while the relative drop is severe, the overall drop in commodity prices this time is not as severe, and credit markets are not frozen like they were in 2008 and 2009.
Oil Prices Will Recover
Pointe Capital believes…
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