Investors and dealers are trading municipal bonds at a record pace this year, driven by strong government sales and a burst of volatility tied to tariffs and interest rate moves. Bloomberg's Shruti Singh has more on the story. ...

Welcome back to Morning Trade Live. It's time now for the big picture. So, let's welcome in Cooper Howard, director of fixed income research and strategy, Schwab Center for Financial Research.It's so nice to see you, Cooper. Happy Friday. Thanks so much for joining us.So, we got a little bit more information out this morning uh from the University of Michigan Consumer Sentiment Survey 49. So, it seems below the boom bus line. And it just looks like we're seeing a deterioration as far as how people are feeli ...

Emergency funds are a must for everyone, regardless of age. Unexpected expenses will happen at some point in your life, but having the money available will help you avoid credit card debt. Many financial advisors recommend that you have at least three to six months’ worth of expenses in emergency savings in case you experience a financial shock, such as a job loss or a hospital stay.For example, you may want to travel frequently during retirement. To do that, you’ll need to understand how much it will cost ...

Core Insights - The article emphasizes that personal risk tolerance in investing is influenced by various factors including time horizon, financial goals, ability to absorb losses, and personality [1][3]. Understanding Investment Options - Brian Feroldi categorizes 16 investment options based on their risk and expected return, highlighting the importance of understanding these fundamentals before investing [4]. - Safer investment options include cash, money markets, and U.S. Treasuries, which are characterized by low risk but also low potential returns [5][6]. - The decision to invest conservatively or aggressively should be aligned with the investor's time horizon; shorter time frames may necessitate a more conservative approach [6]. Risk and Reward Spectrum - Investments are placed on a risk-and-reward spectrum, with safer options at one end and higher-risk, higher-reward options at the other [5][6]. - Real estate is positioned near the midpoint of this spectrum, indicating a balance between risk and potential return [9].

Core Insights - Municipal bonds have experienced a rally, with yields dropping and ratios tightening, indicating a positive response from the tax-exempt market after being labeled "cheap" for months [1] - The current market presents an opportunity for investors to reassess the role of municipal bonds in their portfolios, focusing on stability and income rather than seeking immediate exits [2] Group 1: Market Dynamics - The municipal bond curve remains historically steep, allowing investors to earn more income by investing in longer maturities, particularly in high-quality bonds [3] - Intermediate exposures provide a balance between interest rate sensitivity and attractive yields beyond 10 years, while strategies that span the full range of maturities or focus on the long end of the curve present the strongest value [4] Group 2: Tax Efficiency - Long-term municipal bonds can yield equity-like returns with significantly less volatility, especially in high-tax states like California and New York, where tax-equivalent yields can compete with stock market returns [5] - The break-even federal tax rate, which includes federal income tax, Medicare tax, and state income taxes, highlights the appeal of long-term munis for tax-efficient income, particularly for investors in higher tax brackets [6] Group 3: Short-Term Strategies - The front end of the municipal curve is currently rich, driven by demand from separately managed accounts and retail buyers favoring short-duration, high-grade bonds, yet short-dated credit still offers meaningful yield pickup through credit spreads [7]

Core Insights - The U.S. national debt has reached over $37.86 trillion as of September 2025, marking the highest level in history and significantly increasing since 2020 [3][5] - The government is forecasting a deficit of $1.97 trillion for 2025, indicating ongoing fiscal challenges [1] - Ray Dalio warns that the U.S. is on a path toward a debt-induced crisis, with potential implications for inflation, interest rates, and global markets [4][6] Debt Growth and Economic Implications - The rapid increase in national debt is attributed to stimulus measures and expanded unemployment benefits during the COVID-19 pandemic, coinciding with rising interest rates from the Federal Reserve [2][6] - Dalio emphasizes that debt growth is outpacing income growth, which could lead to a loss of market confidence and a potential debt spiral [7][8] - The debt-to-GDP ratio is now significantly above historical averages, creating a cycle of borrowing that successive governments struggle to escape [6] Investor Strategies - Investors are advised to diversify their portfolios to mitigate risks associated with rising debt and inflation [12][19] - Fixed-income assets such as investment-grade corporates and municipal bonds are suggested as alternatives to U.S. Treasuries, which may lose their status as a safe investment [14][19] - Gold and commodities are recommended as hedges against inflation, while equities with strong pricing power may perform well in a high-debt environment [16][19] - Maintaining liquidity through high-yield savings accounts or mid-term CDs is also advised to navigate potential economic instability [17][19]

Core Insights - Retirement planning is essential for ensuring financial stability in later years, with a focus on proper saving and investment strategies [1] Investment Options for Retirees - Diversified dividend-paying stocks are recommended for consistent income and growth potential, emphasizing the importance of sector diversification to reduce risk [3][4] - Municipal bonds are favored for their stability and tax efficiency, providing tax-free income that can help offset Social Security taxation [4] - Laddering maturities in municipal bonds offers predictable cash flow while managing interest rate risk, making them suitable for growth-oriented investments [5] - Roth IRAs are highlighted as a tool for tax-free withdrawals, allowing retirees to manage their tax bracket and avoid higher Medicare premiums [6] - Immediate annuities can provide guaranteed lifetime payments, offering financial security for retirees without a partner's income [6][7] - Short-to-intermediate Treasurys are suggested as a consideration for boomers seeking stable investments [8]

Group 1 - The investor has 15 years of experience in financial services, focusing on macro trends and identifying undervalued sectors and thematic investment opportunities such as metals, gold, and cryptocurrency [1] - The investor has a strong educational background with a BS in Finance and an MBA, and has experience working in both New York and North Carolina [1] - The investor emphasizes the importance of diligent saving and investing, highlighting a personal journey from a middle-class background to co-managing a seven-figure investment account [2] Group 2 - The investor maintains an updated portfolio that includes a variety of funds, stocks, and sectors, which are shared with followers [3] - Key investments include broad market ETFs like DIA, VOO, QQQM, and sector-specific funds such as XLE and IXC, as well as alternatives like Bitcoin and gold [3] - The investor contributes to the CEF/ETF Income Laboratory, focusing on managed income portfolios targeting approximately 8% yields, with a majority of holdings being monthly-payers for steady income [3]