Municipal Bond Forum
Price rise beside the point
Q
I read an article that said it’s time to get out of munis. It said although they’re up 8.30% this year, interest rates are about to rise and investors are going to sell to protect their gains. What do you think?
A
James A. Klotz responds:
We didn’t see the article, but we can say the fact that munis are up this year is irrelevant to bond investors. They don’t sell their bonds just because their prices increase.
We elaborate on this very important point here: “The No. 1 Sin of Muni Investing.”
Start here.
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