Taking a Tactical Approach to the 2019 Muni Market

The video discusses tactical positioning in the context of market uncertainty, emphasizing strategic allocation over passive management. It highlights the need for tactical adjustments in 2019 due to expected volatility. A shift towards general obligation bonds is noted, driven by economic expansion and increased tax revenues. The impact of Puerto Rico's restructuring on high yield bonds is also explored, suggesting opportunities in the municipal marketplace.

What is the primary reason for adopting a more tactical approach in 2019?

• Increased global stability

• Stable interest rates

• Anticipated greater volatility

• Decrease in economic growth

Why are general obligation bonds expected to outperform?

• Due to declining tax revenues

• Because of increased pension liabilities

• Thanks to expanding economies and tax revenues

• Owing to reduced government spending

What was the previous investment focus before shifting to general obligation bonds?

• High-yield bonds

• Revenue-backed bonds

• Corporate bonds

• International bonds

What is a significant factor in the Puerto Rico restructuring affecting the municipal market?

• Reduction in market spreads

• Increase in technical supply

• Decrease in technical supply

• Stable market conditions

What is necessary for investors in light of the Puerto Rico restructuring?

• A passive investment strategy

• A focus on international markets

• A reduction in high-yield investments

• Flexibility in investment strategies