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Kiplinger
Kiplinger
Business
Paul Malloy

This Overlooked Diversification Tool Can Build Resilience Into Your Portfolio

(Image credit: Getty Images)

Think your portfolio is diversified? If it's just stocks and bonds, you might be missing a crucial layer: Including government balance sheets.

Municipal bonds — issued primarily by states and cities — bring something different to the table. They're secured by independent government revenue streams and local financial strength, offering investors steady income and a way to help maintain stability when conditions shift at the federal level.

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