Ed Butowsky, managing director at Chapwood Capital Investment Management LLC, joins Varney & Co. on Fox Business to examine the municipal bond market and whether it’s worth investing in now.
The current municipal bond crisis is the engaging topic of the congressional hearings that occurred on Wednesday on Capitol Hill, which in addition to will discuss if states should or could file for protection under bankruptcy laws.
While the outcome of these hearings could set off a wave of fears that could cripple the economy with this news, it is certainly not stopping investors from dumping their municipal bond investments. Is this the right move for the investors?
Ed Butowsky has stated in the past, do not buy municipal bonds today because the prices are going to drop for the following reasons:
- Fear in the market
- Potential bankruptcy of cities and municipalities
Ed explains more specifically the driving forces behind the decline in value is because of rising interest rates and rising inflation around the world. For these reasons investors need to evaluate their positions with their financial advisors with regards to municipal bonds, especially if their maturity is three years and beyond. If in fact your bonds maturity dates fall into that category, Ed recommends that you get a Yield to Maturity evaluation to understand the risks.
Ed further reaffirms that, in many situations, he has sold positions that his clients held within their portfolios to capitalize on the gains they have achieved thus far. Now that the bubble within the bond market has exploded and bond values are dropping significantly investors should be working with their advisor and adjusting their portfolios accordingly.
Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
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Tags: advice, bond, bonds, economy, finance, financial advisor, investing, investments, manager, market, money, savings, stock
