https://www.schwab.com/resource-center/insights/content/muni-bond-mid-year-outlook-despite-favorable-tailwinds-be-cautiousMuni Bond Mid-Year Outlook: Despite Favorable Tailwinds, Be Cautious
The municipal bond market is off to its hottest start in five years, led by the lower-rated segments of the muni market. It may be tempting to chase returns, but we suggest that investors instead take a cautious approach and focus on higher-rated issuers during the second half of the year. We see heightened risks on the horizon, with the possibility of a prolonged trade war, uncertainty about Federal Reserve policy, and the possibility of a decline in tax revenues caused by a slowdown in the economy.
