Municipal bonds are off to a slow start in 2018 – which is usually a bullish sign for these tax-free payers.
We last “pounded the table” on munis in December 2016. They were coming off their worst month since the Great Recession, and we discussed their tendency to rally when they are hated:
“It’s impossible to call a top in yields (or bottom in munis) without the benefit of hindsight. But we contrarians make our money buying when nobody else wants to – and the last time munis were this hated, they returned 30-38% over the next 12 months.”
Turns out that was the bottom in munis.…