With a contentious U.S. election on the horizon, investors are bracing for potential market turbulence, but opportunities within the bond market are emerging. Fixed income, particularly municipal bonds, is poised for strong returns as real interest rates remain historically high, offering attractive yields.
Municipal bond issuances have surged this year, driven by the need for infrastructure funding, creating a favorable entry point for investors. As demand increases and supply decreases later in the year, prices may rise, especially for long-term bonds.
Municipal bonds also present compelling value due to their strong credit profiles and tax advantages, offering stability in uncertain times.
Finsum: Muni bonds provide an excellent option for tax-sensitive investors looking for a solid addition to their portfolios amidst market volatility.