Municipal Bond Forum

Time to Sell?

Q

With bonds currently high priced, is this a good time to sell some and buy stocks? The Federal Reserve is expected to buy bonds over the next eight months. Would it be better to hold bonds until the Fed stops buying?

S.B.

A

James A. Klotz responds:

We don’t believe in trying to “time” the interest-rate markets. In our experience, this can be a futile and expensive endeavor.

Our approach to the bond market is long term in nature. We have found that investors who maximize tax-free income on their municipal bond purchases can “ride out” any short term corrections in the market.

Nov 17, 2010

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     The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk