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URL:  http://boards.fool.com/am-sounds-like-you-are-suggesting-i-keep-27693386.aspx

Subject:  Re: Risks w/ municipal bonds? Date:  5/20/2009  5:36 PM
Author:  AngelMay Number:  27553 of 35576

AM,

Sounds like you are suggesting I keep hundreds of thousands of dollars in a money market at less than 1/2 of 1%.

I don't mean to be absolute in suggesting this. I want you to be aware of your options and current conditions. I want you to be aware of the risks before you step out. I don't know how closely you monitor your positions and trades.

What, exactly, would stop me from bailing on the GNMA fund any day it struck my fancy to do so? Or any bond fund, for that matter. On any given day I can be out of bonds and into stocks with a few clicks of my mouse button.

There is nothing keeping you from doing this. The idea, in of itself, is not a horrible one as long as you are going in with eyes open. ETFs make better vehicles for this kind of approach. More traditional funds occasionally have weird restrictions to keep people from trading them.

Do you think the bond market is really that unsafe?

In the past the bond market tends to unwind relatively slowly. This tim