Some investment pros say putting some money into stock and bond mutual funds that have a mostly domestic focus is a way to limit your exposure to the woes facing outside markets -- and it gives you access to sectors and products that some experts believe are consistently the most stable parts of the U.S. market:
- U.S. utilities and telecoms don't have exposure to problems and risks in other countries and they have high dividend yields.
- With business models that could be less affected by regulatory reform and more capital, regional banks may be in a better position than their small community bank and larger bank counterparts.
- U.S. defense is an industry with typically few surprises.
- The default risk on government and Treasury bonds is extremely low.
- Tax-free municipal-bond funds that invest in one or multiple states are another way to invest at home. Unlike Treasurys, interest from muni bonds isn't taxed at the federal level.
- The U.S. dollar has been holding its value as of late, especially against the euro.
