In the 1Q 2018 issue of our quarterly publication, we:Explore how variable rate demand notes (VRDNs)—a type of municipal bond—may have the potential to perk up a bland fixed income diet and are an important part of a well-balanced portfolio.Look back on municipal bond market performance and supply/demand in 1Q.Provide a round-up of yields across the muni spectrum, and an outlook for 2Q, framing it in terms of our broader core narrative.
Our 2018 forecast for markets, economies, and portfolios.
The U.S. economy — late-cycle emergence
Inflation and growth — global-U.S. divergence
Valuations, yields, and volatility — alternative resurgence
Signs points to the U.S. economy being near or in a late (or pre-recession) stage, yet stock market valuations are elevated and inflation is inexplicably soft. Our investment team shares its outlook for the U.S.