Investing Ideas
What Makes PTPs So Special? | Two months ago, the yen was at 123 to the dollar. On Friday it climbed to 111. Currency volatility has doubled since June and taken out the time-tested strategy of the “Yen carry trade.” | |
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| What Makes PTPs So Special? |
| Thursday, 18 October 2007 | ||||||||
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Despite this scary stock market... despite our faltering economy...one tiny asset class continues to power steadily ahead—while paying the highest yields you'll find on Wall Street. We're talking about Publicly Traded Partnerships (PTPs)...and if you've been hunting for an investment that can steadily rise in almost any investment climate—you've just found it. What Makes PTPs So Special?PTPs were authorized by Congress in the mid-1980's to encourage investment in "midstream" energy assets: the pipelines, storage tanks, terminals and ships that move energy from wherever it is extracted to where it is processed and used. As long as they stick to these specific activities, their shares can trade on the stock exchange exactly like a stock, with one big difference: they pay a zero percent tax rate.
This tax break has proved to be so valuable that companies in all sorts of sectors—both in the U.S. and abroad—are now converting to partnerships. They're spreading from the energy patch to real estate, timber, toll-roads, and even airplane leasing. Meanwhile, partnerships are kicking the tar out of stocks. Since the March 2000 market top, Publicly Traded Partnerships have posted a 407% profit, while the S&P 500 has only broken even. And you'll love this: because these partnerships operate businesses with steadily rising cash flows, they are only one-fourth as volatile as regular stocks. They offer an oasis of profits in a dangerous stock market. If you like what you see, we invite you to try it risk-free for a whole year. Wishing You Safe and Steady Profits, Neil George & Elliott Gue Editors, The Partnership Source : Pay Me Weekly This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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