When Volatility Taxes Your Patience And Your Portfolio

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When Volatility Taxes Your Patience And Your Portfolio

When Volatility Taxes Your Patience And Your Portfolio by Peter Hayes, BlackRock

We continue our tax-time chart series with a look at how municipal bonds help manage against equity market volatility.

Last week we discussed how municipal bonds can be an attractive source of after-tax income, no matter what your tax bracket. In the second of our five-chart series, we’ll look at how they offer a ballast against equity market gyrations.

Arquitos Capital Management March 2021 Performance Update

Arquitos Capital ManagementArquitos Capital Management performance update for the month ended March 31, 2021. Q1 2021 hedge fund letters, conferences and more Arquitos Capital returned 14.8% net of fees in March, with a quarterly return of 41.2%. Since its April 10, 2012, launch, the fund has provided an annual net return of 17.7%. As you know, we Read More


Volatility has clearly been the word of the year for stock market investors in particular. After sitting relatively quietly in the teens throughout most of 2012 through early 2015, the VIX Volatility Index has frequently breached the 20s in 2016. It’s an uncomfortable reality for most investors, and it begs the question:

Is your portfolio built to withstand the inevitable equity market ups and downs?

A “yes” answer would mean your investment mix contains an allocation to bonds for equity ballast, a prudent idea and one well-articulated by my colleague Matt Tucker. One type of bond has a track record of particularly low volatility — municipal bonds. As shown below, they have provided a compelling offset when equities decline.

When volatility taxes your patience and your portfolio

Peter Hayes, Managing Director, is head of BlackRock’s Municipal Bonds Group and a regular contributor to The Blog.

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