Mike Pietronico, chief executive officer at Miller Tabak Asset Management, on the other hand, is predicting a municipal bond market where yields are low, but volatility remains rather muted. "We suspect with tax rates poised to move higher, the tax-free bond asset class will remain well supported," he said.
One of the firm's chief concerns going forward is the U.S. resembling Europe's debacle while fiscal cliff negotiations over the future of taxes approach the year-end deadline and $1 trillion of spending cuts kick in, he noted.
"America may come to resemble Europe as austerity gets forced upon it by a frustrated bond market that sees deficits growing, and a Federal Reserve that knows seemingly no bounds when it comes to underwriting this country's debt problem," Pietronico forecasted.
