As investors weigh the steady volume of negative news and opinions on market uncertainty, there are few places to hide from the storm. Some economists say we are now in a ‘bear market,’ while others tout this pullback as a buying opportunity, seeing the volatility as short-term.
No matter where your primary focus lies, these are the ideal times to ensure a balanced portfolio and consider municipal bonds as part of the mix.
According to Bloomberg, Munis recently had its most significant sell-off in two years, opening the window for investors to capitalize on an increase in tax-free income returns. Yields on long-dated bonds are hovering around 90% of similarly dated Treasury rates, the most since November 2023.
This volatility offers opportunities for long-term bond investors, as expectations for rate cuts and eventually a decrease in inflation are potentially on the horizon.
While opportunity exists in market pullbacks, discussing your investment goals with experienced advisors in said asset classes is always prudent. At The DRL Group, we offer our clients a rare resume of experience trading and advising in the municipal bond market. With over 30 years in business and 8 decades of combined experience, we have seen it all. Call us today to see how we can put our mastery to work for you.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
