Municipal Bonds – When Home Is Where You Want Your Money To Be by Peter Hayes, BlackRock
In this installment of “Feeling Taxed?,” Peter Hayes looks at how “made-in-the-USA” municipal bonds might offer some insulation from international risk.
There are plenty of issues taxing investors today, and many of them reside beyond U.S. borders. One of the biggest worries since Day 1 of 2016: China. A slowdown in growth there has been blamed in part for the slide in oil given that China is the biggest consumer of the commodity. And so we ask:
Are you worried about how slowing growth in China and general geopolitical unrest beyond U.S. borders might impact your portfolio?
Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More
An investment in municipal bonds means investing at home. Munis are issued by U.S. states and their political subdivisions only. They have zero to minimal correlation with Chinese equities, other emerging markets or any non-U.S. stock market.
For more of the potential advantages of municipal bonds, check out more from our Feeling Taxed? series, including When volatility taxes your patience and your portfolio and Where to find decent income without indecent risk.