Municipal bonds have historically been seen as a low-risk option for investors. As a result, investors faced with uncertainty in the economy, volatility in the equity markets, and the potential of tax increases have been pouring cash into municipal bond funds—nearly $23 billion in net inflows from …
Morningstar director of economic analysis Bob Johnson addresses recent sluggishness in the economy and makes the case for better growth in the second half of the year.
The muni market still faces challenges, but with careful research and disciplined risk control, muni investors have plenty of opportunity, says Fidelity's Mark Sommer.
As economic concerns weighed, taxable- bondfunds were the strongest asset gainers in May , but their inflows were only about half what they were the prior month, says Morningstar's Kevin McDevitt.