This week saw more of news about the major financial market choppiness. The Week’s municipal bond news included:
- A recent Money Magazine article reminds us that dividend paying stocks are not a direct replacement for bonds. While yields are attractive, from late 2007 through the beer market low in March 2009, an index of reliable dividend paying companies who had boosted payouts for at least 25 years, lost 45%. Keep your asset allocation strictly separate between stocks and bonds.
- Do Municipal Bonds Have a Place in My Portfolio?. A short Morningstar article echoes owning intermediate term, AA grade high-quality municipal bonds, if this asset class fits your portfolio.