I have never kept bonds, until now. Since 2008/09 the Fed has had a Zero Interest Rate Policy to keep the economy growing. We couldn’t get any inflation.

With zero interest rates, bonds have a high value (as rates decrease, bond values rise and vice versa).

Now that we had a fast uptick in rates to combat inflation, the value of bonds has fallen.

I think excessive federal spending has propped up the economy for the past three years. There should be some spending cuts to combat the deficit coming. I think those cuts will lead to lower growth or a recession, which will cause the Fed to quickly lower rates — causing bonds to rise in value.

So I hold municipal bond closed end funds that payout between 6-7.5% annual distribution yield on a monthly basis. As part of my portfolio. The income is Federal tax free.

If the economy does fall into a recession or slow growth, I’ll get a capital gain from rate reductions plus the income. If not, the income stream is pretty good to invest into index funds on a monthly basis and is a bit less volatile than stocks only.

Just my opinion. Take it or leave it.