Should I Buy Munis Now?

Duration: 2:51

Transcript:

Thanks for joining us again at DRL Group. My name is David. And the one question—or, probably the number one question is: “Should I buy munis now?” At the time of this recording, the Fed just lowered rates 25 basis points, and people are looking around going, “Okay, what’s next? Is there gonna be more? Is there gonna be less? Are they gonna raise rates? What’s gonna happen with this whole tariff situation?” Lots of questions out there. CPI numbers, jobs numbers, etcetera. We’re not gonna get into that on this little short video, but what we are gonna get into is what is your objective and where do you see yourself in five, ten, fifteen, even twenty years from now? Are you buying munis to effectively have a tax advantage to where, you’re mitigating your overall tax situation? Are you buying munis for safety or liquidity or margin ability or any type of things like that? Where do you see yourself five, ten, fifteen years from now, and how can we help you get there? Going back to the question, “Should I buy munis?” All depends on how you feel about it and where you’re going to be. If you’re buying for the long haul, absolutely yes. That doesn’t mean by longer dated securities, shorter dated securities, or middle dated securities. That’s not what I’m talking about. If you’re in the market for the long haul, kinda like a Warren Buffett scenario, then absolutely buy munis because of the fact that the overall consensus at the time of this taping is that rates will continue to go down. I’m not suggesting they’re gonna go down tomorrow or the next day or the next day or the next month, but the thought is that rates will go down. So what happens when rates go down? Obviously, pricing goes up. Are you buying munis to trade? Are you buying munis to hold for the tax advantage or for the coupon or for the income or all of the above? So think about that and think about how we, with over 85 years of experience combined in that one market, we’ve lived through everything that you can possibly imagine, whether it be 9/11, 2008, Orange County, Detroit bankruptcy, Puerto Rico restructuring, obviously COVID, interest rates moving up, CPI numbers, interest rates moving down, CPI numbers, labor, all of that stuff. We’ve lived through it. We’ve traded through it. We understand the market. We understand what the complexities and the quite honestly, the confusion that that might give. So we’re here to help. So, should you buy Munis now? It all depends. Give us a call. Over 85 years of doing this combined with our team, we look forward to talking with you about your needs, your desires, your most importantly, your objectives. Thanks for listening.