Time to Sell Munis Again

(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.)

Municipal bonds have had a very quiet rally since the January lows has accelerated in the past month as the bond market in general has found new life. The likely irony is that the economic weakness that the bond market seems to fear is going to ravage local and state finances at a time when many, if not most, have not yet repaired budgets decimated by the last recession. Thus, this rally is one I want to sell into.

I first bought MUB, the iShares S&P National Municipal Bond ETF, at the December lows, motivated by news that Bill Gross had used his own personal funds to dive in….

{snip}


MUB has quietly rallied in impressive fashion, but I am not waiting around to find out whether MUB will challenge its 52-week highs
MUB has quietly rallied in impressive fashion, but I am not waiting around to find out whether MUB will challenge its 52-week highs

*Chart created using TeleChart:

(This is an excerpt from an article I published on Seeking Alpha. Click here to read the entire piece.)

Full disclosure: long MUB

1 thought on “Time to Sell Munis Again”

  1. I would hang on to the Munis for some more. Did you not read articles about states getting more income than ‘projected’ (CA & NJ articles past two days)? Means that states are in better shape than the doomsday scenarios in the news late last year.

    Also, Bill Gross is still holding his Munis and has not sold as yet.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.