The recent upsurge in commodity prices and early signs of a pick-up in inflationary pressure could indicate that the bull market has entered its latter stages. However, until market leadership narrows or our favorite forward-looking economic indicators exhibit signs of deterioration, we’re inclined to regard dips as opportunities on the long side.
Access to relatively inexpensive sensor content, data storage, processing power and high-capacity telecom networks has enabled a new era of machine-to-machine communication that can unlock significant efficiencies for industries rooted in the physical world. The rollout of 5G communications networks over the next few years will enhance remote monitoring and other long-distance IOT functionalities.
We understand investors’ pessimism toward MLPs. Including distributions, the Alerian MLP Index has performed poorly this year. Although sentiment toward midstream MLPs remains weak, the doom and gloom gives savvy investors an opportunity to lock in above-average yields on high-quality names that stand to benefit as US onshore oil and gas production takes market share over time.
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