Many CE MuniBond ETFs are up 15% this year without the drama of SOXX and SPY. The yields at the beginning of January were 5% and they have appreciated considerably due to a few factors: 1. Strong rally in TLT. 2) supply and demand: there is a great demand for tax free income, especially in the high tax blue states and a limited supply of munibonds available. 3) lower Fed Funds rate.
During corrections this year, munibonds have remained flat to higher and have rallied with the broad market. Selecting the right CE munibonds are key. I will be doing my monthly search this weekend and will post my new longs next week on Philosophical Porch.
Gains this year have been very good. However, I am growing weary of surprise tariff announcements and plan to hold my CE Munis, Gold, Silver, GDXJ, SILJ and continue to pyramid my Gold, Silver, Mining positions. I sold all my equity ETFs on Thursday one hour after the latest tariff announcement. I am open to day trading SPY and other ETFs, but I have had it with Trump and his tariffs. The result of these tariffs will have grave consequences for stockholders.
I can make just as much on my gold, silver, mining and CE Munis without exposing myself to as much tariff risk.
There is about a 60% chance S&P hits a new high. But there is also risk that the December 2018 lows get revisited (40%).
I wonder if Trump makes concessions before the election to get a deal with China. I think not. He clearly wants a deal badly, but on his terms. Funny, but he has no idea how to relate to Asians, especially the Chinese. Respect and humility are not a part of his demeanor or character. |
