Q: Hi Peter & Team,
If I understand bonds correctly, we are in a period right now where we could see them do quite well over the next number of years. Do you agree or disagree with this statement?
If you said agree.... Some of the best performing in the past have been Municipal bonds. Could you please share your thoughts on Municipal bonds specifically regarding risk? If you think they would be a good to hold in a long term portfolio? And do you have any Municipal bonds you could recommend that might do well by us?
If you said we disagree with my statement in paragraph one... could you please explain why?
Thanks for all you do
gm
If I understand bonds correctly, we are in a period right now where we could see them do quite well over the next number of years. Do you agree or disagree with this statement?
If you said agree.... Some of the best performing in the past have been Municipal bonds. Could you please share your thoughts on Municipal bonds specifically regarding risk? If you think they would be a good to hold in a long term portfolio? And do you have any Municipal bonds you could recommend that might do well by us?
If you said we disagree with my statement in paragraph one... could you please explain why?
Thanks for all you do
gm
5i Research Answer:
We would agree; much will depend on inflation, but it certainly looks like rates will come down soon in Canada and ultimately will in the US as well (later). This should be very good for bonds. There is greater selection in the US, and we would suggest MUB, with very low fees (0.05%) and one-year return of 5.12%. The market is thin in Canada, but HMP is one option (one year 3.93%, fees 0.35%).