Comments on: “Safe Harbor Investment Covenants”

By: farley 5

farley 5 — Thu, 06 Nov 2008 22:56:14 +0000

1. NEVER buy a Muni expecting to sell it. Hold to maturity.
2. Spreads on Munis are very skinny and brokers don’t make money.
3. Bids for Munis will be fine if the face is over $25K. Under that, they are hard to resell.
4. Use the CUSIP to check out the Callable price. Most are at Par – not 101.
5. There are a TON of munis out there that are pre-refunded but trade as if they were A rated.

By: Custer

Custer — Thu, 06 Nov 2008 22:17:29 +0000

The big problem with Munis is you can’t sell them without taking a huge hit. Your broker makes money. And if you buy bonds wth good yields, they are probably callable at 101.

By: Custer

Custer — Thu, 06 Nov 2008 22:12:21 +0000

Thank you, Sara. I’ve been suckered by Stansberry’s letters a number of times. “Buck” may be correct: they all may be fakers.

By: sara

sara — Wed, 29 Oct 2008 17:20:42 +0000

Stansberry Research was nabbed by the SEC several years ago for fraudulent and deceptive claims made to investors. The SEC complaint can be viewed here:
http://www.sec.gov/litigation/complaints/comp18090.htm.

By: NBKid

NBKid — Sun, 26 Oct 2008 02:13:07 +0000

The one thing going for MUNI’s from what i’ve heard will be if Obama gets elected, he is on the record of saying taxes will rise on interest income. With Muni’s being tax free, the superrich and super careful investor will be more proned to look at Muni’s for an investment, and they are expected to benefit from the above. Good luck. NBKID