One muni bond fund to consider is Nuveen’s Muni Value Fund (NYSE: NUV).
Boom & Bust subscribers should be familiar with Nuveen – the fund management company that manages the Build America Bond fund (NYSE: NBB). We bought this fund in 2011 and sold it for a profit this year.
NUV is currently trading at an all-time high so it’s not a prudent time to buy… just yet.
I like this fund because it doesn’t use leverage. This makes it less volatile than most funds that do use leverage. Low volatility and steady income is what you’re looking for if you have your sights set on the muni bond market. And you should be looking for steady income everywhere because that will be how you survive and prosper during the crash ahead.
Looking “under the hood” of NUV you’ll find a slew of the essential services bonds that Rodney talks about above. In fact, this fund owns bonds on toll roads in Miami-Dade county, Florida… on public water utilities in San Francisco, Californrnia… and on Houston Texas’ water and sewage system, to name a few.
This fund has good long-term prospects and I’d look to buy shares on the next pullback to around $10/share.
If you haven’t done so already read the Survive & Prosper issue on “Are You a Fixed Income Investor?”.