Municipal Bond Forum
Opportunities for those who do their homework
Q
Everybody is dumping Puerto Rico bonds because 13.5% unemployment is so high. Thus, people are moving out of Puerto Rico and it is declining in population. Don’t you think this could be dangerous for investors?
A
James A. Klotz responds:
Of course we do. We have made this clear in a number of our articles and commentaries.
Our article, “Herd Mentality Yields Unique Value,” pertained to a positive report by Standard & Poor’s regarding two of the insurance companies and their ability to pay investors if a worst-case scenario for Puerto Rico did unfold.
Perspective is important. Often, unfavorable news leads many investors to panic and “throw the baby out with the bathwater,” which in turn creates opportunities for those who do their homework.
Start here.
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The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.