UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: nyg One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35383  
Subject: Re: Munis yield more than treasuries Date: 8/16/2002 10:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I own the closed end muni funds both for deversification and liquidity.
Warren Buffet and Bill Gross have advised that stocks may return about 6% going forward--before tax. Compare the fact that closed end munis pay >6%, which is an after-tax return with less risk. This Muni fund 6% yield is tax free.
I think short term rates will be flat or lower for many months. I own NMA and NQM and others.They trade like stocks- that's the liquidity.I've read that short term rates would have to double before the yield on these muni funds would possibly decrease. Long term rates have not increased in about a year, so the NAV has not decreased.
Does this plan sound interesting to anyone else? Comments?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.