By: Frank Holmes
It appears there’s no shortage of investor love for municipal bond funds. September 28 was the 52nd straight week of inflows into state and local government debt, marking the second longest streak on record, according to the Investment Company Institute (ICI). Year-to-date, munis have attracted more than $48 billion in new cash.
Although I can’t say how long this rally will last, the drivers for the $3.7 trillion muni market remain the same now compared to a year ago: stock market volatility; a thirst for tax-free income and capital preservation; and a need for safety in a world beset by perceived threats, from geopolitical uncertainty in the European Union to the upcoming U.S. presidential election, the most divisive and controversial in modern history.
By: Frank Holmes
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