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Anyone taking this route, or are people swearing off of fixed income (esp. Muni's) at this point?
I read in Barron's last week (I think it was) that there are some managers who report that the baby is getting thrown out with the bathwater with respect to Muni's.
I had vwahx vanguard HY in the past, it was a great fund with very reasonable mgt fees/ good yields, but sold it in 2010.
I don't think the muni market will 'boil over', not like the real-estate markets in 2009. I think we may have around 50s-150s municipals 'belly up' over the next 12-36 months and this is a very small numbers in relations of how many municipalities out there, but this is MHO.
I bought more munis over the past few weeks, as long as you choose privatized good ratings A- or higher and shorter terms [i.e. 5-10 yrs] you'll be ok
but the best defense is to have a good/well balanced bond portfolio
Comments
You can also look at foreign stock dividend funds for a little yield.
I'm still hanging on to my muni fund: I might add a little.
I don't think the muni market will 'boil over', not like the real-estate markets in 2009. I think we may have around 50s-150s municipals 'belly up' over the next 12-36 months and this is a very small numbers in relations of how many municipalities out there, but this is MHO.
I bought more munis over the past few weeks, as long as you choose privatized good ratings A- or higher and shorter terms [i.e. 5-10 yrs] you'll be ok
but the best defense is to have a good/well balanced bond portfolio
just my 2 cents worth...jnn