Bond market performance weakened following Fed comments on tapering QE. Over the next couple of quarters, we expect a transition from a market priced for liquidity to one priced for growth. We believe markets will eventually begin to focus less on the Fed and more on the fundamentals of a slowly improving global growth story.
The recent swift correction in tax-exempt interest rates has created opportunities for municipal bond investors to attain very attractive risk-adjusted returns. An investor in the highest tax bracket could achieve around a 7.0% taxable equivalent yield in today’s market environment. With credit quality largely remaining stable for many municipal issuers and rates significantly higher than
Investors seeking growth opportunities for an equity portfolio should not overlook mid-cap stocks. Mid-size companies typically feature a combination of desirable attributes – more stable than start-ups yet more flexible than large companies. Investors holding mid-cap stocks over long periods have benefited from strong performance with less volatility compared to small-cap stocks. Finding the middle
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