Are municipal bond funds beaten down enough yet?

[Smilodonfatalis]

Municipal bond funds have taken a double blow lately. First, the fed is threatening to raise interest rates. Bond prices always come down in response to rising interest rates. Then, Detroit declared bankruptcy, sending some investors into a panic because they're afraid municipal bonds aren't as safe an investment as they thought.

As a result, municipal bond fund prices are declining, and many of them are cheap.

I would buy more now except I already have too many, and I'm trying keep a balance to my portfolio by combining them with Dow dogs, utilities, and Reits..

Some of these funds are at 52 week lows and now may be a good opportunity to buy.

DMF for example is around $8 a share. It pays monthly tax free dividends with a 7.6% yield. I also like NUO, NKG, and NMY.

Most cities and states aren't in as bad a shape as Detroit and it's rare for a city to declare bankruptcy.

 

[Katzndogz]

Municipal bond funds have taken a double blow lately. First, the fed is threatening to raise interest rates. Bond prices always come down in response to rising interest rates. Then, Detroit declared bankruptcy, sending some investors into a panic because they're afraid municipal bonds aren't as safe an investment as they thought.

As a result, municipal bond fund prices are declining, and many of them are cheap.

I would buy more now except I already have too many, and I'm trying keep a balance to my portfolio by combining them with Dow dogs, utilities, and Reits..

Some of these funds are at 52 week lows and now may be a good opportunity to buy.

DMF for example is around $8 a share. It pays monthly tax free dividends with a 7.6% yield. I also like NUO, NKG, and NMY.

Most cities and states aren't in as bad a shape as Detroit and it's rare for a city to declare bankruptcy.

36 cities have declared BK since 2008. It used to be rare but there are hundreds on the verge. Do your homework.

 

[Mad Scientist]

Bonds are at historical highs, there's only one way for them to go.

It's gonna be loooooooong drop too!

 

[Smilodonfatalis]

Municipal bond funds have taken a double blow lately. First, the fed is threatening to raise interest rates. Bond prices always come down in response to rising interest rates. Then, Detroit declared bankruptcy, sending some investors into a panic because they're afraid municipal bonds aren't as safe an investment as they thought.

As a result, municipal bond fund prices are declining, and many of them are cheap.

I would buy more now except I already have too many, and I'm trying keep a balance to my portfolio by combining them with Dow dogs, utilities, and Reits..

Some of these funds are at 52 week lows and now may be a good opportunity to buy.

DMF for example is around $8 a share. It pays monthly tax free dividends with a 7.6% yield. I also like NUO, NKG, and NMY.

Most cities and states aren't in as bad a shape as Detroit and it's rare for a city to declare bankruptcy.

36 cities have declared BK since 2008. It used to be rare but there are hundreds on the verge. Do your homework.

36 cities out of thousands? I still say that is rare. Plus I only invest in bond mutual fonds, not individual city bonds.

 

[waltky]

M' Granny wantin' to sell her Detroit munis...

... any buyers out there?