timwest

Tired of hearing "ALERIAN" ads on tv/radio? AMLP

AMEX:AMLP   ALERIAN MLP ETF
266 2 8
Here's why you've seen those ads on tv lately (US Open Tennis too), because you have witnessed the utter collapse of the ALERIAN MLP ETF versus the S&P500             since they initiated and HEAVILY MARKETED this investment back in 2012-2013.

Since that "heavy marketing" stage, Alerian has dribbled down to a massive loss relative to the benchmark they were hoping to keep up with. They lured unsuspecting individuals-institutions into their alluring story about earning a higher rate of income. You can see you will need a LOT of income now to make up for the divide. A relative drop of 80% is a brutal loss.

The advice? If Wall Street manufactures something, it is likely something you will want to avoid. Just like 3x, 2x and inverse 2x funds which are best only used as trading vehicles, you want to stay away from what Wall Street creates in their back rooms.

I will say that maybe there is a year-end tax bounce here (after it has fallen behind the S&P500             by 80% as shown on this chart) because yields are now up near 10%, which may provide some short term cushion and attract some new buyers, but I would be happy to trade out of it for a 10%-20% gain in the next 1-4 months. Risk 4%.

Tim

10:22AM 9/17/2015 13.82 last - 0.05
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timwest PRO
2 years ago
Alerian keeps getting ads on tv - everyday. Alerian is down another 15% from the time I posted this chart on 9/17/2015. Scary decline. Massive liquidation going on here.
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timwest PRO
2 years ago
Stopped out, on paper trade only, thankfully, I never bought it after watching it for relative outperformance over the ensuing days after publishing. It never acted like it was being bought. It didn't outperform the market on any day that I was watching it. Now take a look at AMLP.
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