It makes sense to have a specific level of familiarity with the securities we put in our portfolio. But just investing in familiar securities and items can blind us to other alternatives that may benefit us..

In this episode, Mark Riepe explores the "home bias"– or the propensity to buy stocks from one's home country– with Schwab's Chief Global Financial investment Strategist Jeffrey Kleintop. They talk about how worldwide business often have a similar footprint, how some countries act as proxies for particular sectors, and methods to avoid the home predisposition..

Next, Mark consults with Cooper Howard, handling director for fixed earnings strategy at the Schwab Center for Financial Research. Cooper and Mark go over how investors tend to over-invest in municipal bonds from their home state, or from bond companies with which they are familiar. This is a challenging predisposition in the muni market due to the fact that there are some tax rewards to invest in munis from one's home state. Cooper also explains some often-misunderstood attributes of muni bonds and the bond markets.

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Essential Disclosures:.

The information offered here is for basic informative purposes just and should not be considered an individualized recommendation or individualized investment recommendations. The financial investment strategies mentioned here might not be suitable for everyone. Each investor requires to examine a financial investment technique for his or her own particular situation before making any financial investment choice..

All expressions of opinion undergo change without notice in response to shifting market conditions. Data consisted of herein from third-party suppliers is acquired from what are considered trusted sources. Nevertheless, its accuracy, completeness or dependability can not be ensured..

Examples provided are for illustrative purposes just and not intended to be reflective of outcomes you can expect to accomplish.

Investing includes risk including loss of principal.

Diversification and possession allocation strategies do not make sure an earnings and do not secure versus losses in declining markets.

Indexes are unmanaged, do not incur management fees, expenses and expenses and can not be bought straight. To learn more on indexes please see www.schwab.com/indexdefinitions ()..

Past performance is no guarantee of future results and the opinions provided can not be considered as a sign of future performance.

Set earnings securities undergo increased loss of principal throughout periods of rising rate of interest. Fixed earnings financial investments are subject to numerous other threats including modifications in credit quality, market valuations, liquidity, prepayments, early redemption, business events, tax implications and other aspects. Lower rated securities go through greater credit threat, default risk, and liquidity threat.

International financial investments involve extra dangers, that include differences in financial accounting standards, currency changes, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Purchasing emerging markets might highlight these threats.

All business names are for illustrative purposes just and are not a suggestion, deal to sell, or a solicitation of a deal to purchase any security.

Currencies are speculative, really unpredictable and are not suitable for all financiers.

Tax-exempt bonds are not necessarily an appropriate investment for all persons. Details associated to a security's tax-exempt status (federal and in-state) is acquired from third-parties and Schwab does not guarantee its accuracy. Tax-exempt earnings may undergo the Alternative Minimum Tax (AMT). Capital appreciation from mutual fund and reduced bonds may be subject to state or regional taxes. Capital gains are not exempt from federal earnings tax.

Commodity-related products bring a high level of threat and are not appropriate for all investors. Commodity-related products may be exceptionally volatile, illiquid and can be considerably affected by underlying product prices, world occasions, import controls, around the world competition, federal government guidelines, and financial conditions.

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