Dow's losing streak extended

Sellers went home a little early on Fri allowing the buyers to take over in the final hour. But buyers could not carry the day. Dow had been up & down big (below 7K at the lows) but ended down 128, decliners over advancers better than 2-1 & NAZ was up a few. S&P 500 FINANCIALS INDEX rebounded strongly from the 172 yearly low to close at 197, up 13. Most of the other indices had similar stories. The Alerian MLP index came back from another low (152) to close at 163, down only 4.

Oil price crashed once again:

CLX08.NYM

....Crude Oil Nov 08

...78.76

... 7.83 (9.0%)

As a footnote, Exxon Mobil, a Dow stock, dropped 5½ to 62, another yearly low.

In this brutal Oct sell-off, all yield based securities have been punished badly. Badly!! Junk bond funds are yielding around 20%, seemingly discounting the end of the world & the hereafter. I just got a statement form one of mine which RAISED (I repeat raised) the div over 10% a few months ago. The reward was to drop the price another 10% to a new record low. Since then the stock must be down another 1 (it's a low price stock). REITs have always had high dividend yields, so they are even higher in today's depressed markets are even higher. Yields are well into double digits are common. The yields for MLPs are largely tax free in the year in which they are paid & much of the REIT divs may be tax free or taxed at capital gains rate, etc. But these guys just can't get no respect with a Dow down 6K from its peak one year ago. That's how it goes.

In MLP land, double digit yields are routine, with many 15+%. Kinder Morgan (KMP), the largest, raised the quarterly distribution 3¢ yesterday to 1.02, the units are up modestly from the time of the announcement (but down about 20 from its peak a few months ago). Others have announced increases in the last couple of days. They are trying to fight back the lower unit prices with these increases, but the battle is a tough one. Yields of 12-15% are common.

Kinder Morgan shares rise after distribution boostAP

In these tough times, try to get rest over the weekend. It may be tough, but try. Long term thoughts for very smart investing are difficult to come by these days. But they will win out! Program those thoughts into your minds.