Whatever happened to Munigeddon?
In 2010 Meredith Whitney conducted an interview with 60 Minutes. She painted a dire picture describing the doomsday of the municipal bond market. Whitney predicted that over the course of 2011, there would be widespread municipal bond defaults. Thousands of advisors received phone calls following the airing of this program.
Ironically, bonds became one of the top performing asset classes in 2011. Rather than delivering Munigeddon to investors, municipal bonds have generated some of the highest after-tax total returns of any bond sector in the market since 2010.
The next bond market concern may be that of rising interest rates. Visit www.entrustfinancial.com and open the May 10, 2013, newsletter: “Making Informed Decisions” for perspective about The true impact of rising rates on bond funds. Better yet, call us today to help you make informed decisions about your money: 610.687.3515.