In the middle of February, with the Standard & Poor’s 500 index down 10%
since New Year’s, anyone suggesting that the first quarter would end in
positive territory would have been laughed out of the room. And yet
that’s exactly what happened.
The market never believed that the Federal Reserve would raise interest
rates four times in 2016, so it came as little surprise last week when
Fed Chair Janet Yellen and her policymaking colleagues backed away from
such an aggressive path.
Listening to the presidential candidates may leave you feeling as though
the U.S. economy is circling the drain. Campaign rhetoric focuses on
negatives, and outlandish proposals take on a life of their own in daily
news bites. In fact, the economy is rolling along steadily.
So far this year, close to $50 billion worth of newly issued municipal
bonds have come to market. This may sound like a large number, but it’s
not even close to meeting the enormous investor appetite for these