Municipal Bond Forum

Time to Sell?

Q

With bonds currently high priced, is this a good time to sell some and buy stocks? The Federal Reserve is expected to buy bonds over the next eight months. Would it be better to hold bonds until the Fed stops buying?

S.B.

A

James A. Klotz responds:

We don’t believe in trying to “time” the interest-rate markets. In our experience, this can be a futile and expensive endeavor.

Our approach to the bond market is long term in nature. We have found that investors who maximize tax-free income on their municipal bond purchases can “ride out” any short term corrections in the market.

Nov 17, 2010

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