SDR: my RE, fixed rate mortgage and student loan debt, and stocks are all inflation hedges. I don’t need more. Bond funds are more deflation bets.

Flu: I agree muni bonds have done poorly lately, one source said they had their worst quarter since 1994. That’s why you can get closed end CA funds paying a tax free 4.6-5.2% right now. Roughly like a 10% pretax yield.

In three years if 10 year treasury rates go back to 1%, these bonds will have appreciated by about 20% on top of three years of paying tax free 5% income.

The mini rate spike in 2018 lasted even last time. Peak was 3.2% in 11/18 and bottom was 0.5% in July 2020.

The end of the pandemic stimulus bills and a return to divided government means a huge pullback in inflationary gov spending. Giant state surpluses mean less muni supply. Rich always getting richer means more muni demand.