Heated debate seems to be common in the Muni bond arena of late, due to a few predictions that Muni’s are in big trouble going forward. Whether the predictions come true or not, the “Power of the Pattern” is suggesting certain action should be taken!
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I do “hope” some of these predictions don’t come true, yet in the long run, hope usually isn’t a good investment strategy. For whatever reason, this Muni bond ETF is suggesting “lower prices are ahead in the Muni bond complex!” If you are long these bonds, at a minimum one might consider harvesting some values at the present levels, if you didn’t harvest at much higher levels on the initial breakdown at (1).
