Summation
I bought into SGLP on its fall because I had never seen an MLP have a melt down before. At least the purchase was small. But 2008 has been a terrible year, and any loss hurts because there have been very few gains to partially offset those losses.
There are easier ways to make money in MLPs than making speculative buys on the big dips. I think the market is shooting first and asking questions later. But one can't blame the market for going with a strategy that is working this year.
MLPS for next year
I am telling myself that I have already done my homework and made the purchases that is going to make 2009 a fantastic year. I believe that BWP, KGS and MWE will do great in 09. I believe that DPM will partially recover and thus do better than sector average. I believe that my more conservative holdings [EPD, ETP and MGG] will not weigh down my returns very much. Of those MLPs in which I do not own units, I think that anyone buying CPNO, ETE, HLND, HPGP or WPZ will do great. All of those projection are based on the usual metrics: the distribution to DCF ratio, the growth in DCF estimates, the low price/DCF ratios, and the historical and present trends in distribution growth. And there are too many to mention that will be a few hairs below greatness.
There are a lot of options for making significant EASY MONEY and low risk money in this sector. There is no need to get speculative. There is no need to be greedy.
So I am not tempted by making some fast money in QELP. Or at least . . . that is what I am thinking this afternoon.
BTW - both MLPs to have a meltdown in 2008 were Oklahoma companies. This Texan is beginning to see a trend.
Bob a.k.a. Factoids