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What to do, then? I've seriously reduced Asia exposure. Not a thing left in Europe in my portfolio. I'm 37% bonds, according to M* Instant X-Ray. I need to take the time to use their more thorough full-blown X-Ray tool. Bonds are held in PRWCX, MAPOX (balanced funds.) Also PREMX, PRSNX and DLFNX. PRSNX is classified as "World Bond?" Ok. The biggest bond holdings are PRSNX and PREMX. I'm not going to make any changes for a while. I'm going to let the dust settle and let my choices ride.
From the article: ". Master limited partnerships, for instance (those that aren’t exposed directly energy prices) offer bond-like returns but aren’t bonds; so, too, are real estate investment trusts"
Uh, REITs and MLPs being "bond-like"? Some investors are in for a rude awakening if they think that.
@scott "bond-likereturns" yes, an ...ummm... unfortunate word choice. Even if you insert "income" for "returns," then it still requires clarification that that may be what they offer but no assurance that is what yer gonna get. Lately, however, it has been a good filter for reading; if I see "if you're willing to go out a little on the risk spectrum" yada-yada [i.e. beyond bonds] re. REITS/MLPs, I simply terminate reading the article any further. Fineto! The writer is a simpleton/salesperson/huckster.
“Why so wild in MLP-land?” according to Miller Howard, a money manager that specializes in income-producing stocks, the Wall Street Journal reports. “There are many novice investors in MLPs that don’t really know what they are, what they do, or what the long-term story is. They’re just in it for the yield, or following the ‘hot dot’ of excellent performance for the past decade.”
Howard argues that many new investors falsely believe that since MLPs are exposed to the energy space, the sector should be sold off when oil prices fall. With MLP-related mutual funds growing to $32 billion in assets from $3 billion over the past four years, Howard points out “that’s a lot of inexperienced investors.”
Comments
PRSNX is classified as "World Bond?" Ok. The biggest bond holdings are PRSNX and PREMX.
I'm not going to make any changes for a while. I'm going to let the dust settle and let my choices ride.
From the article: ". Master limited partnerships, for instance (those that aren’t exposed directly energy prices) offer bond-like returns but aren’t bonds; so, too, are real estate investment trusts"
Uh, REITs and MLPs being "bond-like"? Some investors are in for a rude awakening if they think that.
"bond-like returns" yes, an ...ummm... unfortunate word choice. Even if you insert "income" for "returns," then it still requires clarification that that may be what they offer but no assurance that is what yer gonna get. Lately, however, it has been a good filter for reading; if I see "if you're willing to go out a little on the risk spectrum" yada-yada [i.e. beyond bonds] re. REITS/MLPs, I simply terminate reading the article any further. Fineto! The writer is a simpleton/salesperson/huckster.
http://www.etftrends.com/2015/03/getting-it-wrong-with-mlp-etfs/
“Why so wild in MLP-land?” according to Miller Howard, a money manager that specializes in income-producing stocks, the Wall Street Journal reports. “There are many novice investors in MLPs that don’t really know what they are, what they do, or what the long-term story is. They’re just in it for the yield, or following the ‘hot dot’ of excellent performance for the past decade.”
Howard argues that many new investors falsely believe that since MLPs are exposed to the energy space, the sector should be sold off when oil prices fall. With MLP-related mutual funds growing to $32 billion in assets from $3 billion over the past four years, Howard points out “that’s a lot of inexperienced investors.”