I am very freaked out about interest rates, thought they would go much higher, but now am convinced that they will stay stable or possibly go lower (but not by much).
That said my broker, with my permission, took 40% of my money and bought tax free municipal bonds. He wants to lock in revenue for me – seems to make sense. Since selling my company, I have had all the money in cash and some treasuries at Merrill Lynch. I expect some more cash over the next year or two which will make my bonds 1/3rd of the portfolio.
Does anyone see any dangers with the economy on this strategy? I wish I had put my money where my mouth was on the housing bad news, I have very little experience investing even though I understand finance to a reasonable extent.
