I find it interesting that there is little to no talk about munis.
When I heard Jim Chanos knocking munis, I sold a long-term New Jersey CEF holding in August. I got lucky, getting out very near the top. Then Meredith Whitney helped fulfill the prophecy with her scary report after which munis sold off 18-25%. I couldn't resist and reentered, though not in the same fund. Bought VKI, which holds bonds in such things as O'Hare Airport, Dallas-Ft.Worth Airport, NY MTA. For NJ, I switched from a fund with a municipality bent to NQJ, which holds NJ GOs, Port Authority, etc. Did I luck out again, and get in near the bottom ?
Sure there's interest rate risk, but there are bargains out there. Just have to keep a closer eye on them than usual. |
