Global X MLP ETF Allocation Increased

By on October 31, 2019

MLPA 2019Weakness in energy focused MLPs over the past three months has presented an opportunity to increase the position size in the Global X MLP ETF (MLPA). The fund seeks to track the performance of the Solactive MLP Infrastructure Index. MLPA currently yields approximately 9%.

Cash available was used to increase the allocation to MLPA in the SMA portfolio from 6.2% to 7.0%.

The overall market was weak today due to trade war talk out of China and the Chicago Purchasing Manager’s Index (PMI) coming in below forecast. I’m still finding many small and mid-cap economically sensitive issues at prices below fair value in this environment. The oil & gas, chemical, furniture, paper & packaging, automotive manufacturer/parts, financial services, and retailing industry compose most of the apparent bargains. Again, an economic recession would alter this assessment.

MLPA was purchased at $7.85.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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