- Though it has proven far from “transitory,” as the Federal Reserve labeled inflation last summer, we do believe there is anecdotal evidence that inflation may be peaking.
- Even though inflation was rising last summer, there was little response from the bond market, with yields fairly range-bound.
- But we do believe that a municipal bond yield of 4% with a taxable equivalent yield of 6.35% will look very good if inflation returns to anything approaching the breakeven rates forecast by the market.
For further details see:
Cumberland Advisors Market Commentary - Fore!