Very Different Assets, the Russell 2000 and Muni Bonds, Both Look Overvalued

Things have come to a pretty pass.  The romances are going flat…

Let’s start with munis.  It’s pretty simple.  Two Septembers ago, I wrote a post titled Gold on Hold; The New Play May Be in Munis.  This was done in the context of recession worries, and was in the context of a well-documented and [...]


Rolling Down The Yield Curve: A Play In Zeroes

DoctoRx makes a compelling case for zero coupon bonds.

Your humble and chronically bemused blogger drank the Kool-Aid today and added a substantial amount of a specific type of bond to his IRA holdings, transforming zero-yielding cash into a zero-coupon Treasury bond of 8 years duration. This was done while continuing to hold [...]


Which Performed Best Over The Past 15 Years: Zeros/Munis Or Stocks?

Evidence of How Difficult It Is to Garner Excess Returns in the Stock Market

In January 1995, the Republicans took over Congress for the first time in, almost, forever. Quickly a form of gridlock took place that helped the stock market levitate. The R’s wouldn’t let President Clinton spend, and he wouldn’t let them cut [...]