Infrastructure, taxes, and technicals: factors that support muni bonds now
With $2 trillion in federal recovery money being deployed, another $2+ trillion in spending earmarked by the Biden administration's infrastructure plan, and widespread expectations for higher taxes, the case for investing in municipal bonds has rarely seemed stronger. Dennis DiCicco, portfolio manager of John Hanccock Tax-Free Bond Fund, discusses the current backdrop and outlook for tax-advantaged investing.
A widespread health crisis, such as a global pandemic, could cause substantial market volatility, exchange-trading suspensions and closures, affect the ability to complete redemptions, and affect fund performance; for example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other preexisting political, social, and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment.
The value of a company’s equity securities is subject to change in the company’s financial condition and overall market and economic conditions. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments.
It is not possible to invest directly in an index. Past performance does not guarantee future results.
Diversification does not guarantee a profit or eliminate the risk of a loss.