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Knock, Knock... Some Muni Opportunities

Sep. 01, 2017 1:35 AM ETAAPL, AMZN, FAARX, META, GOOG, GOOGL, MANLX, MDNLX, NFLX, AGG, FLAAX, GLD, MUB, NVG, SLV9 Comments
Maks F. S. profile picture
Maks F. S.
5.26K Followers

Summary

  • Discussion of the broad equity markets.
  • Deep dive into municipal bonds and the need for active management.
  • Where to find municipal bond opportunities.

Please Note: This article was first published for Income Idea subscribers.

As a contributor to Seeking Alpha and the author of Income Idea, where we focus on income generating ideas from closed end funds, ETFs and covered calls, I sometimes find the struggle talking about securities when there is arguably little value.

In the bull market of the last 9 years very few long term discount opportunities were left unturned and we are now in an environment where even "junky" high yield closed end funds which ordinarily trade at 10% discounts are now trading at or near parity to NAV.

In my last macro article titled, "Are We There Yet?" we looked at some of the concerning macro trends such as the record consumer and government debt along with the stalled auto sales and increasing consumer delinquency and default rates.

While the media headlines are focused on the market cap weight indexes such as the S&P 500, the equal weight versions of those indexes are continuing to diverge and are lagging by wider margins. Simply put, the performance of the FAANG stocks, Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google (GOOG)(GOOGL), are not amazing representations of the US and global markets as a whole.

Over the last few weeks while the S&P 500 flat-lined, both Gold (GLD) and Silver (SLV) have been making nice gains, in a few cases having meaningful technical breakouts. (Just like they did nearly 10 years ago?)

For an income investor however, short of writing calls on those gold and silver positions you are not going to generate an income. We discussed doing this in last Friday's Covered Call Friday article, "Covered Call Friday - SLV & BBRY"

So if we are potentially at the top of the equity market and you need income, what

This article was written by

Maks F. S. profile picture
5.26K Followers
Intrepid Leader at an RIA.  My firm and I simplify the lives of busy clients by providing ongoing financial planning and asset management. this is done by providing our clients customized, ongoing comprehensive financial planning, and customized investment advisory services tailored to the clients' needs. As a fiduciary, we have a legal obligation to put the needs and interests of our clients above our own. Specialties: fee based comprehensive financial planning, retirement planning, life insurance and protection planning.

Analyst’s Disclosure: I am/we are long FLAAX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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