Question:

Is it better to buy short or long term munis right now?

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I'm trying to decide between OPITTX which is a fund that holds munis with maturities of up to 7 years and is yielding 4.69% or FSFTX which is a short term muni fund and is yielding 3.15%. I'm wondering if people will continue to flock to short term munis for their safety or whether I should buy into the more mid term ones since they've gone down so much (the "buy low" strategy).

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2 ANSWERS


  1. Stick with short term stuff.  Its very likely interest rates will have to go up and maybe soon so go with safety right now.


  2. There's seems to be a stronger interest in the short terms, since interest rates may not stay at there current level for long.

    It's been a long time since I was a believer in long term bonds, with the intererst rates this low and the possibility of a Democratic majority short term seems to be the better choice.

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