Yield Hunting | December 2022 Newsletter And Updated Sheets
Summary
November was another good month with equities rising 5.4% while long-term bonds also rallied. A 60/40 portfolio did extremely well with both sides working.
The dollar finally fell hard providing that lift. The dollar is now the safe haven over treasuries and when it falls, money is flowing out into risk.
Inflation appears to have peaked and started its unwind lower. This is providing a lift to risk but also reducing interest rates supporting bonds as well.
Muni CEFs appear to have some NAV momentum and look compelling here. Most muni CEFs have cut at least once and now have wide discounts.
Core trades look to improve quality by selling small risk positions ARDC and KIO and adding high quality in taxable munis with NBB.
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