Are Municipal Bonds the way to go now for investing? Drawbacks? What to look for?

Question

The US's NOT SO FREE Enterprise system continues to bail itself out with permissive fed borrowing to the point that it keeps itself relatively flat. This makes buying on the rumor and selling on the news so vitally mometarily important for non insiders that do not know when the investment bank's borrowed money will be put to work in the market and when it will be released from the market.

This has forced investment houses to push up or bid up commodities to where the general population would have to give their money to the investment houses to cover their subprime losses.

As Congress regulates this form of trade to allow consumers to survive, investment houses will have no place to go except trade stocks in and out building huge volatility into the market and making sure that small investors lose their money, monitoring their every investment move, using computers.

How does one beat that system except through municipal bonds?

Answer 1

I agree with many of the points you made in your question. Investing in stock market is not as simple and above board as most people think. When the big boys (banks, hedge funds etc) are playing the game a retail investor in the stock market hardly stands a chance.

We need information to deal with stock market manipulations whereas these big guys create that information. In such a scenario investing in bonds is a safe bet although the returns may not be as huge as stock market but the risk associated is also minimal.

Check this place if you want to know more about different kind of bonds and their risk reward profile.

http://www.stockinvest.in/investing-for-...

2. Local government bonds: If you lend a state or local government you get municipal bonds.Local government bonds fall between federal and corporate bonds in matter of safety