The market lost over $11 trillion in value over several days this month, and that substantial drop will take a long time to recover. These declines are particularly troubling for investors in or near retirement and those taking required minimum distributions (RMD) from their retirement accounts because of the extended time it could take to recover these losses.

Uncertainty about US global tariffs has created havoc on most markets, businesses, households, and across the globe as individuals and corporations attempt to chart a calm course in this unprecedented chaos.

Confidence in the markets and the expected inflationary pressures the tariffs will produce have investors frozen. They are shocked by the enormity of the losses in portfolio values and unsure of a safe place to invest.

Amidst the market’s unpredictable nature, high-quality municipal bonds stand out as a beacon of stability. Muni bonds not only offer a secure and predictable income stream but also provide confidence that the principal investment will be returned on a pre-determined date. What’s more, investors in municipal bonds enjoy the advantage of tax-exempt income, making them a compelling choice in the current market climate.

Investing, in general, requires an evaluation of risk, with the anticipated rewards derived from steady interest/dividends and valuation appreciation or return of capital. The greater the risk, the more significant the chance one element of the investment may not pan out. Values are subject to market volatility, interest rate changes, and anticipated and unexpected economic fluctuations. When you buy stocks, you risk the principal for the optimistic hope of a greater appreciation of the initial investment, not to mention expected dividends. When market volatility occurs, the principal investment is the first to go, leaving the investor with an undetermined time to wait for the return of the principal.

Opting for a balanced investment portfolio can significantly reduce risk. Investing in high-grade Municipal bonds, in addition to the tax-exempt income, offers greater safety, security, and predictability for a steady income stream and the assurance that the principal investment will be returned on a pre-determined date, regardless of the market’s performance. While the value may fluctuate as you hold the investment, it’s reassuring to know that you will receive your interest payments, and your initial investment will all be returned, irrespective of the market’s behavior.

The potential for principal appreciation in municipal bonds is most significant in a declining interest rate environment. Still, most bond buyers are primarily looking for a reliable, tax-free income stream and the assurance of principal protection. For bond buyers, any yield pullback presents an opportunity to add to the portfolio and capitalize on the volatility. Muni bonds can offer calmness and confidence in this market storm.

As an example of current high-grade Muni Yields, as of market activity on 4/15/25, investors in a 30% tax bracket would make the taxable equivalent returns of;

• 5.57% for 5-year maturity
• 6.57% for 10-year maturity
• 7.15% for 15-year maturity
• 7.28% for 20-year maturity

Investors in high tax states or in higher tax brackets would earn greater yields.

When it comes to investing in bonds, the guidance of an experienced advisor is invaluable. The DRL Group, with over three decades of bond trading experience, has successfully navigated its clients through extraordinary market circumstances. Their seasoned professionals understand market dynamics, having guided clients through the extremes of Black Monday, the Dot-Com burst, the 2008 Financial Crisis, 9/11, and the COVID-19 Pandemic. This fixed-income experience level is rare and an invaluable asset to investors looking for guidance in turbulent times. The expertise of The DRL Group can instill confidence in investors, knowing they are in capable hands.

When you do business with The DRL Group, you get exceptional service from the operations department to trading and advising. They pride themselves on exemplary personal service compared to traditional stock brokerage firms.

Considering the variety and complexities of municipal bond investments, experience is rare and a crucial step toward success. This emphasis on experience can make investors feel more informed and comfortable with the intricacies of municipal bond investing.