No ‘Juice’ in this Market
By: Tim McPartland,
It would appear there is no upside energy left in the stock market–and this includes the MLP’s. We are tired of watching the MLP’s–they are getting crushed again today because of the real fear that the Saudi’s are more than happy to pump up supply until crude falls under $80/barrel, thereby forcing a cut back in capital spending by shale players.
We are most concerned with how our holdings are doing and in that respect we are satisfied. As noted last week we sold the Legacy Reserves preferred issue as well as the Campus Crest preferred. We purchased an incremental position in Oxford Lane Term Preferreds (OXLCN) which were already in the portfolio. We had held 200 shares and we added 300 more. This gives us a good yield (8.125%) in a term preferred. We didn’t get all the proceeds from the sales re-invested, but we will add another short duration issue soon.
With dividends that are coming into the model through the 15th we stand at a positive 9.12% for the year. After the addition of 1 more short duration issue as noted above we plan to ‘sit tight’ and see what unfolds in the next couple of weeks. A pot full of cash looks really good now with the correction that is occurring and we have just over 12% cash right now. We watch with interest the MLP’s (of course)—there WILL BE a bargain there we will buy at some point in time.