Buy-and-hold investing gains appeal as interest rates rise
State and local government bonds are on track to post their worst yearly performance since 1981, a deep slump for an investment prized for safety and stability.
“This year was a bloodbath,” said Nicholos Venditti, a municipal bond fund portfolio manager with Allspring Global Investments. “It was a bloodbath in munis the same way it was across all asset classes.”
Munis lost 8.5% through Dec. 29, according to Bloomberg index data, driving the total value of the market below $4 trillion for the first time since 2014, as the Federal Reserve pushed interest rates higher to fight inflation.
The Wall Street Journal
By Heather Gillers
Dec. 30, 2022