Investments Management Advisor Jeff Voudrie of Common Sense Advisors Warns Investors That The Dividend-Lure Of Master Limited Partnerships MLPs Could Run Dry Soon
PR Web |
Retired investors not impressed by the historically low interest rates on Treasury bills and Certificates of Deposit have flocked to Master Limited Partnerships (MLPs) (Risks Mount for Retirees in Limited Energy Partnerships dated 3/17/2104;
Because of this risk, investors need to have a quick-exit strategy, should stock prices tumble for the popular MLPs and dividend-paying communications companies,
High-dividend stocks can tumble several percentage points in a single day. That type of stock price drop represents a huge hit for the average retiree, and it could happen on a large scale if the Fed makes similar announcements in coming months, as expected. "The economy is slowing and interest rates are once again declining. It is likely that we will see a repeat of early 2013 in the months ahead and investors must be prepared," Voudrie notes.
What many investors don't realize is that MLPs and similar investment vehicles are often not using 'profits' to pay dividends. They actually rely on selling additional blocks of shares in public offerings or asset sales to fund their dividends. "The more negative press and investigations that occur," Voudrie warns, "the greater the risk that conservative investors that have invested in these partnerships will reverse course and flee."
How should investors react to this possibility? They should "monitor this situation closely and consider reducing their existing holdings accordingly," Voudrie concludes.
Voudrie has gained notoriety for, among other accomplishments, pioneering institutional-level trading systems and making them available to the average investor; software designed to track market movements and enables investors to sell quickly and avoid devastating losses. His patented Portfolio Steward™ has helped many clients to maximize profit and stay away from retirement-ruining loss.
A financial services industry veteran with more than 20 years' experience,
Contact Information:
877-827-1463
Jeff(at)CommonSenseAdvisors(dot)com
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