By Dr. Carla Pasternak
Municipal bonds (munis) have been on a tear. They've returned nearly 7% over the past year, twice the S&P 500.
Investors are withdrawing money from U.S. stocks -- U.S. stock funds saw outflows in 39 of the last 52 weeks, says the Investment Company Institute. Instead, they are turning to the safety of bonds. The $3.7 trillion municipal bond market, where state and local governments borrow to build roads, bridges and schools, is seeing a flood of money.