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?
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