Market News Commentary - From The Desk of David Loesch 12.18.2018Submitted by Tax Free Municipal Bonds/Fixed Income Specialists/DRL Group on December 18th, 2018
- Ballooning health care costs continue to plague smaller cities and hospitals. Many cities are issuing bonds to simply cover the medical bills from the hospitals form patients that cannot pay.
- NJ, IL, and even our state (TX) are trying to figure out how to pay for billions of dollars in unneeded liabilities from public employee pensions. States will need to address this in 2019 as IL and NJ are on the brink of insolvency in their pension accounts.
- Blackrock indicated on 12/12/2018 (world’s biggest asset manager) is a bull on the MUNI bond market. Blackrock sees 2019 as a much better year than 2018, liquidity and volumes should pick up as well.
- Market (DOW) is set to fall this morning on 12/14/2018 by ~250 points while the 10T is hovering around the 2.88% level. Global issues continue to plague our markets along with the trade issues.
- With the “pull of funds” out of the MUN Fund shares this might have another reason other than people moving assets into cash or stocks. MUNI Funds are set to distribute hundreds of millions of dollars of cap gains next week.
- If you viewed the interview with Gundlach yesterday on 12/17/2018, he indicated that the market has already entered into bear territory at this time. He is not bullish on the markets as we move forward into next year. S&P is down 11% from the highs hike the DOW continues to move in hundred point moves mostly to the downside. Gundlach is also touting a high-quality bond portfolio in 2019
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This content is based on the opinions of David Loesch based on his review of articles from Bloomberg.com or CNBC.com.
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