Fri, 19 Jul 2013
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The outcome of the Detroit's distressed-debt situation could be a litmus test for how other municipalities nationwide move forward with their payment obligations.
As investors realize the impact of new tax increases, municipals are going to become more valuable--but research is key to finding value and avoiding trouble, says Fidelity's Kevin Ramundo.
The firm's diversified domestic equity funds, international equity, and muni funds have done particularly well, says Morningstar analyst Katie Reichart.
Despite the scare of recent bankruptcies and downgrades, municipalities have the resources to continue making bond payments, while looming tax increases likely won't affect muni demand, says Morningstar's Jeff Westergaard.
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