After Markets Pause, More Upside Anticipated For Global Equities During 2nd Half Of 2018

While allocations to bonds may vary based upon market conditions and investor objectives and risk appetites, certain types of bonds, from certain types of issuers, can still find a home in most investment portfolios throughout most market cycles.

Specifically, as it relates to municipal bonds, the 30-day new issue supply of municipal bonds has recently fallen to a twelve-month low. In addition, the demand for municipal bonds and their associated levels of tax-free income, coupled with the expected reduction in supply in 2018, has helped to push short-term municipal bond yields to a 14 week low according to Wells Fargo Advisors as of June 29, 2018.

• Review Relative Valuations of International Equities
The pullback in international equities in 2018 as a result of the trade and tariffs tantrum has resulted in even more attractive relative valuations and perhaps even created attractive entry points for investors. While we could also make a bullish U.S. equities case for the second half of the year given the sideways trading activity that has taken place thus far in 2018 on top of a solid and improving economic foundation, selectively adding international equities, at these valuation levels, to a global equities portfolio strategy seems worthy of consideration.

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Disclosure: Hennion & Walsh Asset Management currently has allocations within its managed money program and Hennion & Walsh currently has allocations within certain SmartTrust® Unit ...

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