Municipal Bond Market Activity

Recent municipal bond market volatility has raised questions about the risks and rewards of investing in municipal bonds.  Rising Treasury yields have weighed heavily on municipal bond prices.  Negative press has helped lead to lower demand and higher redemptions in municipal bond funds.   The media tend to focus on the most dramatic stories, such as the state budget troubles in California and local government mishaps (declaration of bankruptcy by the city of Vallejo, CA).   The alarming headlines do not reflect the fact that t

Investment Advice from a Dying Man

A recent article in the New York Times about a terminally-ill former Goldman Sachs bond salesman may seem an unlikely place to find sound investment advice. However, the banker in question, Gordon Murray, has just written a book, The Investment Answer, which espouses the principles of his last employer, the asset management firm, Dimensional Fund Advisors (DFA). We at Dowling & Yahnke are big fans of DFA.