Assuming that one has broadly diversified municipal bond holdings, the threat would not seem to come from a biblical-scale wave of defaults. (I must admit that we have no data on muni defaults during biblical times.) The bigger threat to a broadly diversified muni portfolio would seem to be the typical market cycles of run-up followed by correction followed by run-up.

FORBES: Whatever Happened To The Muni Bond Implosion?

If KMV's model works and the market correction has nearly run its course, junk bonds are now a buy.

FORBES: Default-risk bookies

If KMV's model works and if you think the market correction has nearly run its course, junk bonds are a buy now.

FORBES: Default-risk bookies

Is this a just an aberration or a re-run of the April correction?

FORBES: Another big correction for Gold and Silver?

When a fifth wave is extended, we should be on the alert for a sharp correction once that wave completes its run.

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Since the correction of last May turned we have had a great run, but since the New Year it has felt stronger still.

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Michael Holland: Among the thoughts I agree with from Vahan and Barry is that, after a huge run, the market obviously can have a correction of significance at any time.

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In the month since the stock reached new, 52-week highs, the stock pulled back to retrace about 25% of its August-July run as part of a five-day correction that took shares of NLS into short-term oversold territory.

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