NEW YORK (TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.
Last week, Kass wrote about muni funds, naysayers' take on the markets and about the Institute for Supply Management's manufacturing index.
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If I was a trader and owned closed-end municipal bond funds, I would reduce my long exposure. (I generally agree with Jim "El Capitan" Cramer's observation about sector rotation after the jobs report.)
If I was an investor and owned closed-end municipal bond funds, I would add to my long exposure on the next 3%-5% drop (if it occurs). This is where I reside.
Here is the rationale behind being long the basket.
The Emperor's New Clothes
Originally published on Monday, June 30, at 7:35 a.m. EDT.
Today's markets represent a fairy tale.
"But he hasn't got anything on," a little child said.
"Did you ever hear such innocent prattle?" said its father. And one person whispered to another what the child had said, "He hasn't anything on. A child says he hasn't anything on."
"But he hasn't got anything on!" the whole town cried out at last.
The Emperor shivered, for he suspected they were right. But he thought, "This procession has got to go on." So he walked more proudly than ever, as his noblemen held high the train that wasn't there at all.