The Ignored Investment That's Clobbering Stocks 6-to-1

In This Issue: The Ignored Investment That's Clobbering Stocks 6-to-1 The Bad and the Ugly of 2014 The investment that beats 94.5% of stocks It's up 15.2% a year for 10 years running. That's better than 94.5% of stocks. And that's only the "average" for this investment. The rest are so far ahead of stocks, it's ridiculous. Go here. The Ignored Investment That's Clobbering Stocks 6-to-1 12/25/2014 Looking for a big winner in the market? (Who isn't, right?) Do yourself a favor and forget about stocks for a moment. Instead, we want to take you to a corner of Wall Street few investors know about. In fact, we'll bet you that fewer than one in a hundred have ever put a penny into it. But if you fish in this tiny pond, your chances of landing a whale of a return go up—way up. That's because for every 10-bagger in the S&P 500 over the past 10 years, there have been almost four times as many in this tiny niche of "non-stocks." We won't keep you guessing. We're talking about master limited partnerships. If you've never heard of MLPs, don't feel bad. Many investors haven't. But if you've been looking for an asset that steadily rises in any market, you've found it. Consider: You're 25 times more likely to double your money in MLPs: Three out of four MLPs (76%) have more than doubled in the past five years, while just 3% of stocks have. They pay no corporate tax: MLPs' profit margins are fatter than those of regular corporations because they pay no corporate tax—in America, the country with the highest corporate tax rate in the world. Hard to believe, but true. They pay the highest yields out there: Precisely because they pay no tax, they have much more leftover free cash to deliver to investors like you. You can pocket $10,000 a year for every $100,000 you invest in these cash cows. Despite what MLPs look like, they're not stocks. When you invest in an MLP, you become a partner in the business—but one that doesn't have to attend meetings, manage anyone or deal with all the other day-to-day hassles. But you do get the profits. And they're considerable. With their fat distributions and steady price gains, MLPs have made mincemeat out of stocks, returning 15.2% a year over 10 years running. That's better than 95% of all U.S.-based stocks. What's more, your own personal taxes on that income are so low you'll think the IRS must be slipping up. That's because about 90% of the distribution you get from a typical MLP is tax-free until you sell. Some let you pocket high yields for 10 years or more before you pay a single penny of tax. One of our favorites yields 11%, and you can defer taxes on 95% of your income—in some cases forever. I know this all sounds too good to be true, but plenty of investors are banking big checks from these investments right now. Folks like 81-year-old Jim C., who just last month collected $19,174 from one MLP. We can't wait to show you how to join them. To get you off to a flying start, we've put our five favorite MLPs in a new special report. It's called "Constant Cash Machines: 5 Choice MLPs Yielding 7.6% on Average." In a moment, we'll show you how to get full details on all five—with yields as high as 12.0%—free. But before we get to that, we want to make sure you're armed with all the facts on MLPs. Let's start with why we call them… "The Only Free Lunch on Wall Street" There are plenty of reasons why MLPs are better than stocks. But let's be honest—the one that matters most is they make you a lot more money. Over the past 10 years, MLPs have crushed the S&P 500 by 314% to 116%. Go back even further and the drubbing is even more spectacular. Over the past 15 years, MLPs are up 613% to the S&P's 93%. That's six to one! But here's the kicker: they do it while keeping your money safer than regular stocks. You see, MLPs have an average beta rating of 0.72, which means they're 28% less "jumpy" than stocks—all while producing market-beating returns. According to the "rules" of investing, that just isn't supposed to happen. Such dependable and steady investments aren't supposed to keep pace with the market, let alone beat it. But MLPs turn that outdated axiom on its head. Why Most Investors Are Missing Out on MLPs At this point you may be thinking: "All right, if MLPs are so wonderful, why don't we hear more about them?" Simple. MLPs aren't institutional products. They're designed for the little guy, not the big boys … so Wall Street's hordes of salesmen have little reason to pay attention. And little Wall Street research is done on them, for the very same reason. Here's something else most investors don't know about MLPs: they're spreading. MLPs' tax breaks have proven so irresistible that all sorts of corporations are converting to partnerships. They're spreading from the energy patch—where MLPs got their start in 1986—to real estate, orchards, toll roads, amusement parks, even cemeteries! Last year, Emerge Energy Services went public as an MLP. It supplies the "fracking sand" drillers need to blast through rocks. Emerge earned a bit over $27 million and paid just $160,000 in taxes, for a rate of just 0.6%. Wouldn't you rather own a company that could ignore Uncle Sam at tax time, instead of an identical one that had to fork over 30% every year? Of course you would. And the best place to start is with that special report we mentioned earlier. How to Start Your Own "Constant Cash Machine" Now This new report gives you our complete guidance on each of our five favorite MLP picks. It's called "Constant Cash Machines: 5 Choice MLPs Yielding 7.6% on Average," and it's yours free just for sampling our MLP Profits advisory risk-free for 90 days. One of the MLPs you'll read about is Constant Cash Machine #1: the pipeline that doubled our money. This industry standout owns 18,000 miles of pipelines, including the only one connecting natural gas drillers to Lake Charles, Louisiana—home to half of America's liquefied natural gas plants. This is a straightforward volume-based business. The more oil and gasoline that travels through its lines, the more money it makes. There's zero commodity risk. With low volatility and predictable cash flows, this is one of the cheapest pipeline MLPs out there, trading at just 1.7 times book value and yielding almost 7%. We'll take you inside this cash-generating machine and our other 4 top MLPs in this brand new special report. Don't miss this opportunity to start 2015 on the right foot. Go here for instant access to "Constant Cash Machines." Editor's Note: There's simply no better way to make your money grow through thick and thin than with a careful selection of MLPs. While run-of-the-mill partnerships pay about 6%, the jewels in our new report yield up to 12.0%. AND they're fattening their payouts by up to 15% a year! Just imagine what a steadily rising income stream like that could do for your portfolio. I urge you to check out this eye-opening free report today. With our no-risk trial, there's no reason not to. Wouldn't you rather own companies that can ignore Uncle Sam? What if there were an investment that was exempt from the highest corporate tax burden in the world? And even better, what if it passed those tax savings on to you, the investor? It's not a dream. I've got 125 companies that do exactly that. I'll show you 5 of my favorites for free right now. Go here for more. The Bad and the Ugly of 2014 12/24/2014 By Robert Rapier Here at the end of the year, I like to look back at the top and bottom performing master limited partnerships (MLPs) since Jan. 1. The year was extremely volatile for the entire energy space, and MLPs were not spared. The severe price drop hit upstream MLPs especially hard. In fact, all but two of the 10 worst-performing MLPs for the year were in the upstream sector. Since there are still a few trading days left in the year the list may change slightly, but is unlikely to change substantially. Here are the 10 worst performers for the year to date through Dec. 19, followed by commentary on the bottom five. Data is courtesy of MLP Data. First, do note that these yields are based on distributions made under better business conditions than those prevailing currently. The deteriorating conditions have depressed unit prices, making the yields look much better than they are likely to be going forward. Most of these MLPs will likely see distribution cuts. The worst performer for the year has been Rhino Resource Partners (NYSE: RNO), with a loss of 69.2%. This partnership is in the coal business, and that's been in the dumps for a few years now. In October, RNO announced a large distribution cut, and unit prices plummeted. Niska Gas Storage Partners (NYSE: NKA) is down 65.3% YTD. The partnership has been plagued by earnings disappointments and declines in its fixed-fee revenue. On the conference call discussing the most recent quarterly results, the CEO warned that "in light of the continuing challenging conditions in the natural gas storage market, the board is reviewing the distribution level going forward and it is likely that the distribution will be reduced beginning this fiscal third quarter or suspended if current market conditions persist." The next three on the list, Mid-Con Energy Partners (NASDAQ: MCEP), Eagle Rock Energy Partners (NASDAQ: EROC), and New Source Energy Partners (NYSE: NSLP) were down respectively 64.7%, 57.7%, and 57.4% respectively. These three partnerships are all engaged in the production of oil and gas. Even though most of Eagle Rock's production is natural gas, a 2013 distribution cut and the subsequent suspension of the distribution helped drive down the unit price over and above the decline due to commodity prices. While 2014's big losers were concentrated in the upstream sector, there were still plenty of winners in 2014. Like the losers, the winners have a few things in common. I will discuss the top 10 MLPs of 2014 in next week's issue. This article originally appeared in the MLP Investing Insider column. Never miss an issue. Sign up to receive MLP Investing Insider by email. Have You Heard About Title 26 Funds? If you're like most Americans, you probably haven't. Unlike big-name mutual funds that are born and bred on Wall Street, Title 26 Funds have their roots in the plains of North Dakota and the foothills of Pennsylvania… the birthplace of America's energy boom. And for the past 28 years, they've been one of the best-kept secrets of the investing world. But that's all about to change. I've put together a special report showing how you can use Title 26 Funds to build your very own fortune. You can get all the details here. You are receiving this email at benjamart.ss.stock@blogger.com as part of your subscription to Investing Daily's Stocks To Watch, published by Investing Daily. To ensure delivery directly to your inbox, please add postoffice@investingdaily.com to your address book today. Email Preferences | About Us | Premium Services | Contact Us | Privacy Policy Copyright 2014 Investing Daily. All rights reserved. Investing Daily, a division of Capitol Information Group, Inc. 7600A Leesburg Pike West Building, Suite 300 Falls Church, VA 22043-2004 U.S.A.