Stock Market Turmoil Is Coming. Consider These "Hidden" 12.5% Yields
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Market Volatility and Investment Strategy: The current stock market is experiencing increased volatility due to factors like trade wars, inflation concerns, and uncertainty around AI profits, prompting investors to consider diversifying their portfolios with closed-end funds (CEFs) that focus on municipal bonds for reliable income and lower risk.
Muni-Bond CEFs as a Safe Investment: Municipal bond CEFs are highlighted as attractive investment options due to their high yields, tax advantages, and stability, with specific funds like Invesco Value Municipal Income Trust (IIM), Invesco Quality Municipal Income Trust (IQI), and KTF recommended for their long-term income potential and lower volatility compared to stocks.
Analyst Views on IIM
About IIM
Invesco Value Municipal Income Trust (the Trust) is a diversified, closed-end management investment company. The Trust's investment objective is to provide common shareholders with current income, which is exempt from federal income tax. The Trust seeks to achieve its investment objective by investing at least 80% of its net assets in investment grade municipal securities. Municipal securities are obligations issued by or on behalf of states, territories or possessions of the United States, the District of Columbia and their cities, counties, political subdivisions, agencies and instrumentalities, the interest on which is, at the time of issuance, exempt from federal income tax. The principal types of municipal debt securities purchased by the Trust are revenue obligations and general obligations. The Trust invests in inverse floating rate securities, such as tender option bonds, for investment purposes. Investment adviser of the Trust is Invesco Advisers, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
