NXQ - Investing Ideas For An Aging Expansion: 3 Reasons To Look At Munis
The current U.S. economic expansion is now the second-longest in the postwar era, and while it may have more room to run, we believe a recession is likely over the three- to five-year horizon. As U.S. taxpayers think about positioning their portfolios, we see three key reasons why the tax-exempt municipal market may be attractive late in the cycle.
- Muni bonds have outperformed when rates are rising. Rising rates like we're seeing today are a fixture of late-cycle markets, and on a pretax basis, munis have outperformed taxable investment grade corporate bonds in three of