CHARLES FISH INVESTMENTS, INC.

A Brentview Company

NEWS & INSIGHTS
Q1 2025 Market Commentary April 2, 2025 CHARLES W. FISH, CEO/CIO / FOUNDER “Tact is the ability to tell someone to go to hell in such a way that they look forward to the trip.” – Sir Winston Churchill It seems twisted logic for the federal government to vote to spend more money it doesn’t have and then to require a separate vote to authorize going further into debt. Doing so is never straightforward. It is inevitably encumbered with political agendas. Fortunately, states and their political subdivisions can’t monetize their deficits like the federal government. When they wish to add on expenses, they will need to cut back in other areas, raise revenue, or both. A proposal to make all municipal interests federally taxable is a non-starter. Besides violating the longstanding tradition of reciprocal immunity, it would create a crippling burden on municipalities and would penalize high net-worth investors well beyond any benefit they would gain from a modest reduction in their federal tax rate. So far this year, new issues municipal volume is running 27% ahead of last year and showing no signs of slowing. The yield index on the 10-year tax-exempt bonds is 20 basis points higher than it was at the end of 2024 (3.06% vs. 3.26%). It appears the rise in yields is being affected by the need of many to sell bonds to meet upcoming tax obligations, the jump in new issue volume, and market volatility. With elevated inflation expectations and waning consumer confidence, our economy seems headed for a significant slowdown. This is compounded by the uncertainty surrounding the Trump tariffs and uncertainty tends to put plans on hold. Delaying capital projects and hoarding liquidity fuels further slowing of the economy. At the risk of oversimplifying, an exhausted economy will eventually bring about the return of a low-interest rate environment. This is why we consider now and the next few months a good time to be adding to municipal portfolios. Having said that, a caution flag needs to be raised for certain types of municipal credits. Obviously fire prone areas remain a major concern. Colleges and universities that have relied on federal government support need to tighten their belts. Many hospitals swamped by COVID have yet to recover fiscal health. Many are perilously close to defaulting. Several already have. Property tax revenues in devastated areas of L.A. County will plummet at the same time those areas are desperate for help from those same strapped government entities. Lawsuits abound. In extreme cases, a court may enjoin the payment of debt service pending some judicial proceeding. In short, it is a little bit of a mine field out there and you need to watch where you step.

  – Sir Winston Churchill

This commentary reflects the views of Charles Fish Investments, a wholly owned subsidiary of Brentview Investment Management, LLC. The contents herein are provided for informational purposes only and are subject to change without notice. They are not a solicitation or endorsement of any sector, security, or index. Past performance is not a guarantee of future results.

Charles Fish Investments, Inc. (CFI) has merged with Brentview Investment Management, LLC.

Dear Friends,

 

I am pleased to announce that Charles Fish Investments, Inc. (CFI) has just merged with Brentview Investment Management, LLC.  For over a year, CFI has been searching for a partner whose investment philosophy and dedication to their clients would be compatible with CFI’s. Importantly, we wanted a partner that could help our existing clients as well as promote CFI’s growth. Brentview recognizes the unique value we bring to our clients and will not change the manner in which CFI conducts its business. With offices in Chicago and Los Angeles, they make an ideal partner for us. They have received a five-star overall rating from Morning Star and were recently featured in US News and World Report. I’ll be sending you more information about them soon.

 

CFI will continue to manage client portfolios just as we have these many years and the people you have come to rely on will be the same.  I have personally committed to many more years of service. I can’t tell you how much I appreciate the loyalty you all have given CFI and I promise that you can continue to count on the same level of performance, service and integrity as in the past.

 

Please give us a call anytime if you have any questions or would like further information.

 

Be well,

Charles W. Fish

Chairman/CEO

 

Promontory Point, Utah, 1869

The contents herein are for informational purposes only, and under no circumstances are they to be construed as a recommendation of a solicitation. The information and opinions herein are subject to change without notice and CFI does not undertake to advise the reader of changes in opinion or information.

STRATEGY

30 Corporate Park | Suite 410

Irvine, California 92606

Email

Phone: 949 296 3970

CHARLES FISH INVESTMENTS, INC. (CFI), founded in l984, is a Registered Investment Adviser with the Securities and Exchange Commission under the Investment Act of l940. CFI is an affiliated subsidiary of Brentview Investment Management, LLC.  CFI’s revenues are derived exclusively from the fees received for the investment advisory and/or management services provided.

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