Wells Capital Management Fund Manager, Lyle Fitterer is cautious on municipal bonds according to a recent article in the Wall Street Journal. He thinks that the recent rally in bonds is over done and is trimming the average duration of bonds and his fund to around 2 years, to hedge against interest rate risk. He does run the super expensive, 4.5% load VMPAX municipal bond mutual fund. Why does the Wall Street Journal keep reviewing these expensive mutual funds?
Another professional have signaled that the market has come back perhaps a little too far, so now is the time to adjust your asset allocation if you have been worried about municipal bonds.