Please be advised that we are removing Muni Bonds (MUB) from Investing Ideas today. Below is a brief note from CEO Keith McCullough explaining our decision.
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After seeing this morning's GDP report then a horrific Chicago PMI print of 46.2 in a month where the "weather" turned, I'm getting increasingly concerned that we might be too right on this #LateCycle slowdown.
Munis do have credit risks don't forget. The City of Chicago's bonds, for example, were downgraded to junk earlier this month by Moody's.
Oh, and MUB is at the top-end of its immediate-term risk range, so I'd rather signal buy lower, when they're at the low-end of the range anyway.