David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer believes Municipals Cheap After Detroit Filing. Municipal bonds are an “outrageous bargain” in the wake of Detroit’s bankruptcy filing, according to David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer. Kotok bases his arguments on a comparison on General Obligation Yields to US Treasuries.
Should you wish to take a chance and put a real risk premium on your bond buying, go Italian and get 4.28% for a 10-year — a much greater yield than current U.S. paper.
I must admit there are days when I just feel like giving it all up as I contemplate depositing my money in the bank, but a Ben Bernanke induced 0.10% interest-rate doesn’t excite me whatsoever.