I was looking at Muni bond yields here in the U.S. They range between 1.75% to about 4%. The higher rates go for 30 year bonds in places like Florida. The shorter you hold the bonds the lower the interest rates. Also, if you want to be investing in Muni bonds as 40% of your portfolio as a hedge against a potential stock market collapse at some point you might think of setting up a bond ladder like most long term investors eventually get to within a market this volatile ongoing. However, even with buying Tax Free (both state and federal tax free when you buy muni bonds within your own state) you still need to make sure these bonds are insured with treasuries or some form of insurance in case the municipality you are investing in goes bankrupt like Detroit recently did. When a city goes bankrupt you might lose not only your investment but also your interest if your bonds aren't insured in some way.
Low Bond Yields Send European Investors To Stocks
With
euro-zone bond yields becoming ever more compressed, perhaps it should
come as no surprise that investors are chasing European equities. But
how much upside can they reasonably expect on stocks? WSJ's Alen Mattich
has the story on MoneyBeat.
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