Folks, it’s a bloodbath out there! The tech sector is melting down, dragging the Nasdaq down with it. Everyone’s talking about a recession, and the fear is palpable. But you know what? That’s EXACTLY what we’ve been waiting for. Because when everyone else is panicking, savvy income investors like YOU have the chance to make a killing.
And where’s the hidden gold mine right now? In a place most investors would NEVER even think to look – the Municipal Bond Closed-End Fund market.
Yes, I know – muni bonds are supposed to be BORING, right? Safe, steady, and about as exciting as watching paint dry. But here’s the thing: Thanks to the recent market turmoil, these funds are trading at historically wide discounts to their net asset value – meaning you can buy them for PENNIES on the dollar.
Plus, with yields spiking across the board, many of these funds are offering tax-free yields of 10% or even 12%! That’s right – completely tax-free in your pocket – while everyone else is scrambling for cover.
Here are 3 funds that deserve a place on your watchlist RIGHT NOW:
1. BlackRock MuniYield (MYD) – A High-Yield Bargain
This actively managed fund offers a whopping 5.7% tax-free yield and is currently trading at a 9% discount to its net asset value, according to Kiplinger. That translates into a tax-equivalent yield of 7.5%! Plus, BlackRock is a reputable manager with a solid track record in the muni bond space.
2. Nuveen Municipal Value (NUV) – Safety AND Value
This one is for investors who prioritize safety above all else, as it doesn’t use leverage. But don’t let that fool you – NUV is still trading at a 7% discount, offering a generous 4.0% tax-free yield, with a tax-equivalent yield of 5.3% for someone in the 24% tax bracket.
3. (Research Needed) – A Fund to Round Out Your Portfolio
We’ll be diving deeper into the muni CEF market to unearth another compelling opportunity for you – perhaps focusing on a specific state or geographic area depending on where you live, or a fund with a shorter duration if you’re particularly sensitive about interest rate changes.
My advice? Don’t let fear paralyze you – let it be your GUIDE. While the rest of the world is running for the hills, use this opportunity to grab these muni bond bargains while they last. You’ll be thanking yourself later!
P.S. Tomorrow, we’ll be taking a deep dive into the world of midstream energy! These MLPs are practically PRINTNG MONEY right now, offering 8%+ yields AND growing payouts. Stay tuned – you don’t want to miss this.