I’m actually curious about CA muni bonds maturing in the next 6-12 months. Idea is to hold until maturity. Apparently you can get them in the 3.5-4.5% range, no state tax. What I don’t understand is the re-insurance landscape: what happens if a muni defaults, who’s the insurer, how solvent are they, etc? Awhile back I did do some research on Orange County, and when OC declared bankruptcy, the original bondholders were made whole. They didn’t lose a penny.
As for the equities market, forget it. To quote John Mauldin: “Sell in May and walk away.”
