Stupid Income Investment of the Week, Courtesy of Bloomberg

Comments (3)

  1. Frank says:

    Anybody who still reads or relies on “Fortune” magazine deserves what they get.

    Nobody suggests that muni bond holders become “day traders” nor was that advice proffered in the Bloomberg article. Further, closed end funds continually rebalance their portfolios so should interest rates rise — and there is no sign of that currently — the fund manager adjusts the portfolio with higher yielding bonds. (That’s the purpose of a “managed fund”, right?) Receiving a tax free yield above 6% plus the opportunity to gain the appreciation of another 5-10% once the marketplace realizes their mistake, is a great way to make money in my book. Since many people these days are looking for fixed income yield, snapping up some of these oversold closed-in muni bond funds at a nice discount is a very, very wise move.


  2. CP says:

    This is, of course, why Bloomberg was used to push this investment advice. It wouldn’t have been as easy to accept coming from another source.


  3. Elliot Miller says:

    The real issue with bond funds such as MUB is that as its component bonds mature the proceeds are invested in lower yielding securities.


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