One year ago....

Meredith Whitney made her alarming call on Municipal Bonds, claiming that there would be mass defaulting across the country.  The call led to a massive selloff on Municipal Bonds causing Muni Bond Funds to lose substantial value.

Turns out she has been wrong (at least so far), and the panic selling presented a huge buying opportunity for those who had cash.

In fact Muni Bonds were the number one place to invest over the last year.  Thanks Meredith!!!

Here is a chart of the Van Kampen Investment Grade Municipal Bond Fund (VGM) that shows the damage caused one year ago: