MLPs Soar to New Highs in 2009
Avi Morris submits:
This year the stock market started with a continuation of a down market followed by one of its sharpest rallies beginning in early March. But the recovery has not been evenly spread as with all prior recoveries. Tech stocks have had a very strong rally. Nasdaq has been leading the way, already up 25% YTD. Such a gain for a full year would be considered outstanding. Investor appetite for risk (tech and high yield securities) has been very strong in the last few months.
The Alerian MLP Index (AMZ) is up 42% YTD and the index with reinvested income (AMZX) is up 47% YTD while the Dow is up only 4%. Junk bonds have also had a very strong rally with many of the funds up 50%+ YTD from depressed levels at the start of 2009 when yields of 20-25% were common.
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