Financial Planning News
Fri, 4 Jan 2013
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Munis have faced both interest rate and credit risk pressures, but at current levels, this varied asset class is worth considering, especially for those in higher tax brackets, say Morningstar's Candice Lee and Eric Jacobson.
After a strong 2014, we're keeping an eye on interest rates and issuance, which could both creep higher and sting in 2015. Plus, two muni -fund picks worth a look today.
With a tilt toward longer durations, worries over Puerto Rico, and large outflows, muni funds struggled in 2013, but they have something to offer investors, says Morningstar's Eric Jacobson.
Increasing demand, tightening supply, and expectations for higher rates and inflation should bring better muni returns in the coming years, says Nuveen's John Miller, Puerto Rico notwithstanding.
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