Re: Trade ideas...lets see what we can come up with
new trade idea 8/26/07:
i think it may have been mentioend, but buying municipal callable (and even non-callable) bonds now i think is a good idea.
yields have jumped up .71 bps (on callable bonds) due to pressured selling. interest rates are still low, but, i think it is reasonable to conclude that they'll come down a bit as demand slows growth . a lot of data comes in this week, though none of it post credit market turmoil.
if the fed lowers rates as predicted, getting in now would be a good idea, but, waiting a week might also be best since robust readings could push yields on these bonds even high, thus providing even better entry points.
i don't have a strong signal on this, maybe +15-20%, but it is definitely worth dipping your toe in since you could average down after strong readings or leave the investment as is after weak readings.
Barron
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