Scott Weitz

Why This Rally Is Unsustainable

Of course individual stocks can do well.

I'm referring to our macro situation...and its not pretty. Bankruptcies are climbing rapidly, foreclosures are off the charts, we're closer to socialism than most realize. Equities have rallied, but credit markets remain terrible.

The game has changed. Those that think we're going to bounce back to 2007 levels are kidding themselves.


On May 05 05:12 PM Smackdown wrote:

> Wrong. Plenty of opportunity. I already pointed out the MLP space.
> Earnings have continued strongly and distributions are being increased.
> Things are not so tough. The world goes on and taking advantage of
> the panic has yielded once in a lifetime returns.
>
> Alerian MLP index returns for 10 years (as of 4/27) is 13.27% annual.
> One year is -21.9%, five year is 6.94%, ytd is up over 25%.
>
> S&P by comparison is 10 year -2.85%, One year is -37.01%, five
> year -3.57%, and ytd is kind of a wash.
>
> From Oct/Nov lows, the Alerian is up over 50% with divs. Individual
> name, the way I do it, are up way more.
>
> Please educate me about why these companies are doing poorly or why
> I should not be long? Some like SXL and NS have announced record
> results and are actually forecasting more records....
>
> Plus I am collecting huge tax deferred distributions that are steadily
> increasing.
>
> On May 05 02:59 PM Scott Weitz wrote: