NUV - Do Not Write Off Munis: Comparing Historical Municipal Bond Returns To Stock Returns
In this article, we compare municipal bond market returns to the S&P 500 historical market returns from 1991 to 2016. You may be wondering why compare two financial instruments that are as similar as apples and oranges. The reason is simple, one instrument presents less risk and volatility versus the other and by comparing historical returns, it is easier to determine if the extra risk is warranted. Furthermore, if the assumption is that future returns will mimic historical returns, then the analysis could be useful for future decision making at best and teach high level