INMU - Why Munis Have Real Potential For Gains

• In this review, I take a look at the muni market. This has been a sector I have favored for a long time.
• Due to rising inflation and yields, I turned cautious on munis (and fixed-income as a whole) in 2021. When an expected sell-off occurred in 2022, I returned to a bullish stance.
• This bull thesis was premature, as munis continued to trend downward. However, recent upticks in prices across the muni-CEF universe suggests we may have seen a bottom.
• Defaults remain rare, and municipalities remain in good credit standing. With signs inflation may have peaked, it is reasonable to suggest buying now offers an attractive risk-reward.

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