Where do you put your short term savings for the best interest rate?

[kib]

I agree, one of the reasons I like muni's is that I feel they have the potential to do real things to help real citizens. But I do try to screen for what I consider to be valuable uses and hopefully ethical municipalities, and I won't go below "a rating with an A in it". I've sold for as much as 18% over purchase price, in addition to getting steady interest all along, but my conundrum is what would I purchase instead that would give me as good an income stream, so for the most part I just sit on them. It's confusing to me that muni's And stocks And gold all seem to be selling for a premium ... aren't some of these supposed to be hedges against the others???

[dado potato]

In my case, after taking profits in munis, I wanted to reduce duration. I accepted that the after tax yield would be lower. The parking place I selected was a floating-rate etf, FLOT. As I recall, the duration is 0.15 years. The dividend will vary with changes in interest rates. If interest rates paid by banks drop, then I would expect the share price to remain about the same, but the dividends to be smaller. On the other hand, if interest rates rise from here, I would expect dividends from FLOT to increase.

I don't believe I or anyone else can accurately predict future interest rates. There could be surprises.

I agree that it has been a bull market in nearly everything. There are some exceptions, which a contrarian might want to consider with due diligence. I note there is pessimism around retail REITs and energy. This time of year, tax-loss selling of closed-end funds with energy-related portfolios may have created a buying opportunity for investors with a tolerance for risk.