Muni Bonds Are the Place to Be in 2017 For Fixed Income Investors, Says Wells Fargo

The low interest rate environment will persist in 2017, with the Federal Reserve likely to raise rates twice next year, according to George Rusnak, co-head of global fixed income strategy at Wells Fargo Investment Institute. His top investment pick in the fixed income space for next year is investment grade municipal bonds, but he is negative on high-yield muni bonds. Rusnak's favorite pick globally is emerging market debt, particularly Asia and Russia. Wells Fargo expects U.S. GDP growth will be 2.1% at year end.