Tax-free municipal bonds: 4% muni = 6%+ taxable. Near-zero default risk.
Muni Bond Tax-Free Income
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| VTEB | BUY | 4% | 10.0% below entry | 4.0% above entry | 0.0% | TVYH |
| MUB | BUY | 4% | 10.0% below entry | 4.0% above entry | 0.0% | TVYH |
| NUV | BUY | 7% | 10.0% below entry | 4.0% above entry | 0.0% | TVYH |
| HYD | BUY | 6% | 10.0% below entry | 4.0% above entry | 0.0% | TVYH |
| TFI | BUY | 4% | 10.0% below entry | 4.0% above entry | 0.0% | TVYH |
| NEA | BUY | 10% | 10.0% below entry | 4.0% above entry | 0.0% | TVYH |
This strategy has moderate long-term potential but requires monitoring. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -18% drawdown to return 25% long-term. - Exit rule: Exit if yield drops below historical average for 2 quarters. Reinvest all dividends.