Managing Partner of Chapwood Investments Management, Ed Butowsky, joins Varney & Co. on Fox Business to discuss the current state of the municipal bond market and it’s potential downward momentum.
With the current economic status, many states are having money problems. Combined with increasing interest rates, this will cause certain municipal bonds to default which may likely ignite a sell off, resulting in a loss of capital gains for investors.
I recommend that investors ask their financial advisers to do a Yield-to-Maturity (YTM) check from this point forward on their bond investments. Due to the fact that interest rates have dropped since investors bought these bonds, the value of these bonds has gone up and investors most likely have substantial unrealized capital gains.
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.
Tags: advice, bond market, bonds, finance, inflation, investing, investments, money manager, savings, yield to maturity, ytm