There are some market segments that are just boring. And one of them happens to be the municipal bond market. Historically, munis have been a ‘steady-as-she-goes’ investment. It is perhaps the ultimate buy and hold for high-net-worth individuals, institutional investors, and insurance funds. Typically, munis are as exciting as watching paint dry. But lately, that steadfastness has been put to the test.
Munis have suffered from some high bouts of volatility.
Several factors have helped munis become a pretty sector since the end of the summer. While that may dampen some of munis’ appeal, the reality is bonds are still a good deal and may even be a better buy for the future ahead. In the end, don’t let some increased volatility persuade you from moving out of the municipal bond sector.
municipalbonds.com
by Aaron Levitt
Nov 03, 2021