Originally Posted by JaxRed
Not that it answers your questions.... but I personally would not be a big fan of Muni Bonds. For a couple reasons.... there's a big debt bomb building toward an explosion at some point. And the only real solution is inflation. Reduce the cost of debt by inflating the currency. Bonds is not a good place to be when that happens.
Secondly, the Feds are going to be looking for all sources of income. I personally think Social Security will be means tested. And I think they will see all the income that could be raised by removing the tax exemption on municipal bonds. That would really lower their value.
Bonds almost throughout history have yielding slightly above inflation. I guess to your point I wouldn't go buying long term bonds right now, but there are plenty of good reason to buy bonds.
Munis are fine as long as they are tax backed or GO bonds. They get a little more dicey when they are RO or project based.