Municipal Bonds

Because there are so many stocks that are NOT paying dividends and also going down people are looking for a safe investment that will pay a decent return and also won't lose money. Slowly folks are beginning to think about bonds of which there are all kinds.

Cities and counties have been issuing bonds. There are the school bonds for building new school buildings and the local district issues these. How about building a new sewage plant? Yes, a special bond could be used. If you live in a big city there could be bonds for that new stadium or maybe an aquarium or a huge theme park. Toll roads are a big money maker, aren't they?

The businessmen who want to build these attractions get the permission of the local government to issue them and they have the blessing of the city council or whoever and then go out and collect your money. These are not what are called investment grade bonds. They rank below the A classification and as a result you, the bond buyer, get a much higher rate of return. Remember this - the higher the rate of interest the riskier is the bond. Of course, if your municipality says this has their blessing than it should be O.K. Right?

The citizens of Denver popped for a new aquarium to the tune of 1.2 million. It was supposed to bring in more tourists and pay for itself with tickets. A fraction of those visitors showed up and now it looks like the project might default. They do not have enough money coming in to pay for the fish food and service the debt. And many toll roads are not getting enough traffic.

The spending spree of local governments has sponsored (not guaranteed) bonds equal to more than $320 billion this year. There are $1.6 trillion in municipal bonds. When the projects don't pay out the local governments can raise taxes to pay the shortfall, can't they? Sometimes they can, but many times they won't. The present default rate is running 10 times its historic norm.

Bonds can be as risky as stocks. You must be careful where you invest your hard-earned cash. If you buy any bond other than a U.S. treasury you insist a reputable insurance company insure the bond. Just because the mayor says it is good doesn't mean anything.

One of the safest ways to buy bonds in a no-load bond mutual fund and there are hundreds of them. You can buy as little as $1,000 increments. Your broker will not tell you about them.

If you insist on buying individual bonds you want to know the true net yield, is it investment grade and is it insured. Bonds can be as dangerous as stocks. That is why a mutual fund manager is important, but you still must be in an investment grade fund.

(c) 2005

Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter to receive his market letter for 3 months at www.mutualfundmagic.com to discover why he's the man that Wall Street does not want you to know.

bathroom cleaning service Northbrook ..
In The News:

ETA sharing on Apple Maps and Google Maps keeps contacts updated automatically while you drive safely. Learn step-by-step instructions for iPhone and Android.
Data removal from brokers protects against AI-powered scams and deepfake threats in 2026. Learn how data brokers sell your personal information to scammers.
Learn how to act against cybercriminals in 2026 with essential security steps like two-factor authentication, software updates and credit freezing.
Choose between OpenAI releasing Sora text-to-video model, the AI race heating up, or Waymo driverless cars launching in cities across the country
Learn how to set up Google Maps and Apple Maps on your phone to automatically remember where you parked. Step-by-step instructions for enabling location services and parking detection.
Phishing scammers use rnicrosoft.com domain to impersonate Microsoft by replacing "m" with "rn" in typosquatting attacks that steal login credentials.
OpenAI announces new teen safety rules for ChatGPT users under 18, blocking romantic roleplay and requiring extra caution on body image topics.
A 2025 data breach at fintech company 700Credit exposes personal information of more than 5.8 million people through compromised third-party integration partner.
Retailers lose $76.5 billion annually to return fraud as nearly 10% of U.S. retail returns involve fraudulent activity, with $850 billion in returns expected in 2025.
ShinyHunters claims responsibility for stealing 94GB of Pornhub user data affecting over 200 million records and demands Bitcoin ransom.
ChatGPT 2025 now connects to Apple Music, Canva, Expedia, TripAdvisor and OpenTable through built-in apps that help users create playlists, design graphics and more.
Apple releases emergency patches for two zero-day vulnerabilities actively exploited in attacks. iPhone and iPad users urged to update immediately.
DoorDash launches Zesty, an AI-powered social app that recommends restaurants through conversational search, now testing in San Francisco and New York.
Cybersecurity firm Infoblox reveals that over 90 percent of parked domains now redirect visitors to scams and malware, making simple typos extremely dangerous.
The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.
GPT-5.2 is now live for all ChatGPT users with improved coding, writing and image interpretation, with Kurt Knutsson offering his review.
New iPhone replacement scam uses pressure tactics and fake carrier calls to steal devices from buyers. Criminals claim shipping errors and demand urgent returns.
Amazon Ring's new facial recognition feature sparks privacy controversy as Electronic Frontier Foundation critics argue the AI upgrade expands surveillance risks.
New Android banking trojan Sturnus steals credentials, reads encrypted messages and controls devices.
Denmark's 3D-printed student village proves automation builds 36 apartments faster than traditional methods. Skovsporet project shows housing future.
Discover Android's new Sound Notifications feature that alerts you to smoke alarms, doorbells, and baby cries even when wearing headphones.
New SantaStealer malware reportedly threatens holiday shoppers with password theft. This Christmas-themed info-stealer targets browsers and crypto wallets.
The Christmas season brings a surge in Netflix phishing scams targeting shoppers with fake emails. Stacey P received convincing scam but verified account first.
San Francisco Giants invite Jamie Grohsong to throw ceremonial first pitch at Oracle Park after he learned to play baseball with a bionic hand following an injury.
FBI warns cybercriminals are stealing family photos from social media to create fake proof of life images in virtual kidnapping scams targeting victims.

Patterns

The Law of Chaos is the theory of random unpredictable... Read More

How to Make Big Money Safely in Stock Market

(1) Stock Market is Tough Place to Make Any Money... Read More

Structured Settlement; Lawyers in NY and Mutual Funds

Minority Report the movie may not be far off if... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More

Look Out The Window

Quick, look out the window. It's raining. No, the sun's... Read More

Market Timing?

The recent criminal fiasco in the mutual fund industry is... Read More

Momentum

One of the basic laws of physics states that a... Read More

Mousetrap

The spring-loaded rat catcher is the ultimate low-tech device invented... Read More

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

Finding A Good Stock

One of the things people are always asking me is... Read More

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash... Read More

What is Involved in Peak Performance Trading?

There is so much involved in developing peak performance, that... Read More

Perfect Storm

Having lived aboard a sailboat for 2 years I was... Read More

Choosing a Stock Broker

If you were to find that you had some severe... Read More

Fools Gold

The stock market has been in an up trend for... Read More

Wal-Mart: Discount Store, Discounted Stock?

As GuruFocus updates the stock buys and sells of gurus,... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More

Cash

How many people went to a cash position this week?... Read More

Cash Is A Position

I go to the Money Show every year to visit... Read More

Trading Tips No 2: The Big Lie in the Stock Market

It is commonly reported that the stock market averages about... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

insured cleaning company Wilmette ..