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Not manna from heaven, but still a good deal

Q

The returns you referred to in your article, “Man Bites Dog, Almost,” can only be achieved by bond traders churning their portfolios. If you buy and hold munis, you will get about 5% to 6% tax free. Still a good deal, but not exactly manna from heaven. Please tell me if I have missed something.

J.T., California

A

James A. Klotz responds:

You haven’t missed a thing. Your comments are right on the money and coincide completely with our philosophy for municipal bond investing.

Jan 19, 2012

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