The last time this happened, municipal bonds soared 40% over the next 12 months. These usually-steady payers are coming off their worst month since September 2008, according to Standard & Poor’s, when its “muni” index dropped 4.8% (and popular funds fared even worse): The Last Muni Bloodbath in Sept 2008… October 1, 2008 didn’t mark the bottom for munis. But it turned out to be a pretty good time to buy, with these funds returning up to 38.4% in the ensuing 12 months! … Gave Way to This 12-Month Muni Boom Those were scary times. The financial world was melting down, and prominent pundits feared that municipalities would be the next wave of defaults. ... Read more