MLP investors, Bear markets, and the Stockholm syndrome
From Wikipedia: “Stockholm syndrome is a psychological response sometimes seen in abducted hostages, in which the hostage shows signs of loyalty to the hostage-taker, regardless of the danger or risk in which they have been placed. The syndrome is named after the Norrmalmstorg robbery of Kreditbanken at Norrmalmstorg in Stockholm, in which the bank robbers held bank employees hostage from August 23 to August 28, 1973. In this case, the victims became emotionally attached to their captors, and even defended them after they were freed from their six-day ordeal.”
Going by a lot of the responses in the “Am I the only one getting nervous?” message thread, I am getting the impression that for a lot of us [and there are times when I am part of this group - but not today] - we are in a psycholgical funk that is much like the Stockhom syndrome. Our MLP portfolios were kidnapped by the bear market. And while in captivity - the bear market told you - while slapping you around and kicking you @ss - and then slapping you around some more - that all investments [and all your investing] are just failed dreams of achieving wealth. You don't deserve it [the riches]. And when you get it, it won't last. You were crazy to even try to get a better return than you get on treasuries. And capital gains? WHAT capital gains? The only capital gains you will ever see are temporary gains - which you will probably fail to capture!
We have been hostages of the bear market - and have been hostages over too long a period - to not have echoes of thoughts like those in our minds. And I hear echoes of those thoughts when I read your replies.
This is only speculation. It will take a year of two to let hindsight give us some vision of what reality really is. Perhaps those who are the most negative are right. But my numbers do not show it. The fundamentals do not show it.
Bear markets are not just wealth altering events - they are mind altering events. We would be atypical if the echoes of the words of the bear were not still freash in our minds. And I have no idea if 6 months from now these words will look hyper-foolish. But I hear and smell the fear in your minds as I read your words.