2009 Stock Market "Miracle"

[WestSideBilly]

LHR, I think the only issue with Muni bonds right now is they have a higher risk of default than they typically have. A lot of towns/cities and a few states are bordering on default.

Of course that's typically why you get higher returns. More risk, more reward.

[TJ_98370]

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The article linked below explains the probable cause of the recent appreciation of muni-bond funds. It's a Wall Street Journal article and you may or may not be able to access the whole thing, but the title is informative enough. --- Is there a flight to perceived safety in muni-bond funds? Is this a sign of lessening confidence in future stock market gains?
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I have been told and I have read that if you are going to invest in muni-bonds there is less risk if you invest in individual state or county type bonds and stay away from small community bonds. The problem with muni-bond funds is that they may include all sorts of higher risk bonds that are not readily notable.
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