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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Webster Groves who wrote (71954)	1/3/2010 9:22:36 AM
From: KyrosL	Read Replies (2) \| Respond to of 74559

Munis have been great for me. My current allocation is around 25%. I have been trading in and out of them via muni CEFs for the last couple of years and owe a lot of my portfolio performance to them. Right now they are not that much of a bargain, unless you are in a high tax bracket. As the new tax proposals gel over the next year or so, high income individuals will realize that their marginal tax rates will reach as much as 60% in high tax states. So, I expect some more appreciation of munis over the next year or so. The alarm noises about municipalities going bankrupt in large numbers are BS. After having rescued the banks, GM, etc., Congress and the Fed will never let states and cities go bankrupt in large numbers. US munis are essentially a bet on large government. I may not like it, but I take advantage of it.