Vanguard High Yield Tax Exempt Fund

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So today I executed to purchase VWAHX (15K). We have little over $26K in EF seating in MMA acct. My main concern is the holding period--now that the MUNIs & Bond market have cooled off from its high last year. I want to get some perspective from anyone here how long should I keep it. Last year I cashed out my GNMA fund which gave me really good return after holding for one year. My hope is to keep this fund for a year with the same outlook. But with the home prices once again creeping up a bit (like its 2006), the Feds might be compelled to change it monetary policy by tighten the screw, increasing the rate slightly which loses principal value. My exit goal is before I start losing some principal, its time to cash out. Good plan??

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My exit goal is before I start losing some principal, its time to cash out.

So when does your crystal ball say that you'll begin losing principal?

Good plan??

If you can tell the future, yes.

Otherwise, no. You should find an asset allocation that matches your goals and risk tolerance and stick with it through the ups and downs.