https://www.equities.com/news/financial-myths-looking-for-the-fastball-got-the-curve-ball-part-iiiPart I of this series on municipal bonds examined the massive scope and attractiveness of municipal bonds, while part II focused on the relative strength of issuers.
A balanced portfolio remains the best defense against risk. Municipal bonds belong in the mix. The traditional breakdown opts for 60% stocks, 40% bonds. With so many fixed-income issues from which to choose, investors can look for the safest vehicles, which run from 2% downward in coupon rate. Issues yielding above 5% coupon rate are fewer and require a careful look. Timing is a key consideration. Looking at early investment results for 2019, municipals look intact. Over the last few months, bonds performed well against equities. In this third entry of “Looking for the Fastball, Got the Curve Ball,” the steady muni returns shine when investors worry about a repeat of the second half of 2018.
