Municipal Bond Forum
Wondering whether to wait
Q
I appreciate your article, “Man Bites Dog, Almost.” I have about $4 million already invested in muni bonds and another $1.5 million in cash that I have been afraid to invest in bonds. I have about $500,000 in stocks, which haven’t done much in the past few years. Should I wait for interest rates to go up? I am 58 and near retirement.
A
James A. Klotz responds:
As we mentioned in the commentary to which you refer, the conventional wisdom advising investors to wait for interest rates to rise is a fatally flawed strategy.
Here is a past article regarding this concept that will also be helpful: Time Flew, But Interest Rates Didn’t .
Start here.
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