This week, Collin Martin sits in for Liz Ann Sonders. Kathy Jones and Collin discuss the upcoming Consumer Price Index (CPI) report and the Federal Reserve's anticipated interest rate cut. They analyze the current state of the credit markets, particularly focusing on recent defaults and the implications for high-yield bonds. The discussion also covers the demand dynamics in private-versus-public credit markets and the potential risks associated with high-yield investments. Finally, they look ahead to upcoming economic indicators and the challenges posed by a lack of data.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned are not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.

High-yield securities and unrated securities of similar credit quality (junk bonds) are subject to greater levels of credit and liquidity risks and may be more volatile than higher-rated securities. High-yield securities are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments.

Investing in alternative investments is speculative, not suitable for all clients, and generally intended for experienced and sophisticated investors who are willing and able to bear the high economic risks of the investment. Investors should obtain and carefully read the related prospectus or offering memorandum, which will contain the information needed to help evaluate the potential investment and provide important disclosures regarding risks, fees and expenses.

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. 

Bloomberg US Corporate High-Yield Bond Index- Measures the performance of the US Dollar-Denominated, high yield, fixed-rate corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on Bloomberg EM country definition, are excluded. It is a market-value weighted index.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(1025-02S5)

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This week, Kevin Gordon fills in for Kathy Jones. Liz Ann Sonders and Kevin discuss the recent NABE conference and the current state of the markets in light of the government shutdown and recent tariff announcements. They explore the implications for earnings season, the potential impact of AI on productivity, and the challenges facing the labor market. They also cover the importance of upcoming economic data releases and how relying on alternative data could have potential effects on market trends and monetary policy.

Then, Liz Ann is joined by Patrick Harker, former president and CEO of the Federal Reserve Bank of Philadelphia. Harker discusses several economic challenges facing the U.S., including the impact of the government shutdown on economic data, the independence of the Federal Reserve, and the complexities of fiscal policy. He shares his thoughts on the need for better data collection and the role of private-sector data sources, while also addressing the labor market dynamics influenced by immigration policy. Harker reflects on his tenure at the Philadelphia Fed and shares insights on the importance of pragmatic policymaking.

Finally, Liz Ann and Kevin take a look ahead at upcoming economic indicators and how the government shutdown could affect future data releases.

On Investing is an original podcast from Charles Schwab. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. 

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. 

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(1025-WE69)

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This week, Liz Ann Sonders and Kathy Jones discuss the implications of the ongoing government shutdown and the impact on key economic indicators and market data. They analyze the current state of the bond and equity markets, the reliance on alternative data sources in the absence of government data, and the upcoming earnings season. Their conversation highlights the bifurcations in market performance, particularly between larger and smaller companies, and the impact of fiscal policy on global bond markets. They also touch on consumer behavior in response to tariffs and the importance of monitoring key economic indicators moving forward.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

Treasury Inflation Protected Securities (TIPS) are inflation-linked securities issued by the US Government whose principal value is adjusted periodically in accordance with the rise and fall in the inflation rate. Thus, the dividend amount payable is also impacted by variations in the inflation rate, as it is based upon the principal value of the bond. It may fluctuate up or down. Repayment at maturity is guaranteed by the US Government and may be adjusted for inflation to become the greater of the original face amount at issuance or that face amount plus an adjustment for inflation. Treasury Inflation-Protected Securities are guaranteed by the US Government, but inflation-protected bond funds do not provide such a guarantee.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. 

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(1025-T88J)

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In this episode, Liz Ann Sonders and Kathy Jones begin by discussing the implications of the government shutdown on employment data and the Federal Reserve's dual mandate. They analyze the challenges posed by the potential lack of government data and the reliance on private sector indicators like ADP. 

Then, Kathy Jones speaks with Joel Levington, who has more than 25 years’ experience in corporate credit research. Kathy and Joel discuss the overall current state of the credit markets, focusing on corporate credit health, the auto industry's challenges, and some of the impacts of economic disparities on consumer credit. They explore the significance of credit ratings, the rise of private credit, and the implications of inflation and government policies on the economic outlook.

Finally, Kathy and Liz Ann discuss upcoming economic data and how earnings season could shape market expectations.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. 

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. 

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(1025-NWPB)

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Kathy Jones and Liz Ann Sonders look at the state of the markets a week after the quarter-point Fed rate cut. They also discuss the implications of the lower rate for the broader market, the particular dynamics of the Federal Reserve's economic projections, and the current state of the labor market. 

Next, Kathy speaks with Robin Brooks, senior fellow in the Global Economy and Development Program at the Brookings Institution. They discuss the current state of central bank policies, focusing on the recent Fed meeting and its implications for the dollar and global markets. They explore the complexities of market reactions to Fed easing, the long-term outlook for the dollar, and the importance of institutional integrity in maintaining the dollar's status as a reserve currency. 

Finally, Kathy and Liz Ann discuss which key economic data to watch in the coming weeks.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. 

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Currency trading is speculative, very volatile and not suitable for all investors.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. 

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(0925-KKW0)

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Kathy Jones and Liz Ann Sonders analyze the market reactions to this week's quarter-point Fed rate cut. They also look at the implications of the lower rate for the broader market, the particular dynamics of the Federal Reserve's economic projections, and the current state of the labor market. 

Then, Freya Beamish, chief economist for TS Lombard, joins Liz Ann in a discussion focused on tariffs and labor market conditions. She emphasizes the complexities of the labor market, particularly in relation to immigration and job creation. The discussion also touches on the legal aspects of tariffs and the potential reactions from the Federal Reserve. Beamish concludes with an optimistic outlook on productivity growth and the influence of AI on the economy.

Finally, Kathy and Liz Ann discuss which key economic data to watch in the coming weeks.

You can keep up with Freya Beamish and follow her podcast Perkins Vs Beamish.

On Investing is an original podcast from Charles Schwab. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. 

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Currency trading is speculative, very volatile and not suitable for all investors.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(0925-GCNT)

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This week, Liz Ann Sonders and Kathy Jones discuss the recent downward revision in job market statistics, the implications for the economy, and the likelihood of a rate cut next week. They analyze the broader economic context of the job revisions, the importance of indicators like the Producer Price Index, and the impact of global market volatility. 

Then, Steven Meier joins the show. He is the Deputy Comptroller and Chief Investment Officer for the New York City retirement systems. Liz Ann and Kathy discuss his role, the importance of education for retirement plan participants and trustees, the convergence of public and private markets, and the challenges of inflation and liquidity management. Meier shares his thoughts on particular investment strategies, mainly in private equity and fixed income, while also addressing the current state of the public markets and the impact of AI on future investments. The discussion highlights the complexities of asset allocation and the importance of understanding market dynamics.

Finally, Kathy and Liz Ann discuss which key economic data to watch in the coming weeks.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

The comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab. 

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

 Currency trading is speculative, very volatile and not suitable for all investors.

Treasury Inflation Protected Securities (TIPS) are inflation-linked securities issued by the US Government whose principal value is adjusted periodically in accordance with the rise and fall in the inflation rate. Thus, the dividend amount payable is also impacted by variations in the inflation rate, as it is based upon the principal value of the bond. It may fluctuate up or down. Repayment at maturity is guaranteed by the US Government and may be adjusted for inflation to become the greater of the original face amount at issuance or that face amount plus an adjustment for inflation. Treasury Inflation-Protected Securities are guaranteed by the US Government, but inflation-protected bond funds do not provide such a guarantee.

Diversification and asset allocation do not ensure a profit and do not protect against losses in declining markets.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(0925-CPRL)

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In this conversation, Kathy Jones and Liz Ann Sonders discuss the current state of the housing market, the implications of potential Fed policy changes, and the broader economic indicators that could affect market expectations. They explore the complexities of housing affordability, the yield curve, and the potential impact of this week's job reports on both the equity and bond markets. The discussion highlights the interconnectedness of various economic factors and the uncertainty surrounding future market movements.

Check out Liz Ann Sonders's and Kevin Gordon's recent housing article "Take the Long Way Home: Is Housing Bottoming?" 

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(0925-9RZJ)

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This week, Liz Ann Sonders and Kathy Jones discuss the implications of political pressure on the Federal Reserve, particularly regarding the administration's attempts to influence monetary policy. They explore the potential risks of increased political control over the Fed, the current state of the bond and stock markets, and the importance of economic indicators such as labor market reports and inflation measures. 

Then, Kevin Gordon, director and senior investment strategist, joins Liz Ann to discuss the situation at the Fed, as well as the state of sectors and factors that could be sensitive to changes in interest rates. Kevin points out that housing is not acting as a traditional macro driver, and he explains the lack of correlation between mortgage rates and the fed funds rate.

Finally, Kathy and Liz Ann discuss the data and economic indicators they will be watching in the coming week.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures 

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions. 

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Currency trading is speculative, very volatile and not suitable for all investors.

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(0825-6V35)

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Liz Ann Sonders and Kathy Jones discuss the implications of the Federal Reserve's annual Jackson Hole meeting, focusing on monetary policy, labor market dynamics, housing market challenges, and the impact of tariffs on inflation. They explore how these factors influence economic indicators and the Fed's decision-making process moving forward. 

Then, Cooper Howard, director and fixed income strategist at the Schwab Center for Financial Research, joins the show to discuss the state of the muni bond market and where there might be opportunities for investors. He and Kathy cover why munis have underperformed other parts of the fixed income market this year; the attractiveness of high-yield, or "junk," muni bonds; investing in individual bonds versus mutual funds or ETFs; and much more.

Finally, Kathy and Liz Ann discuss the data and economic indicators they will be watching in the coming week.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting. 

If you enjoy the show, please leave a rating or review on Apple Podcasts.

Important Disclosures

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see schwab.com/indexdefinitions. 

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Past performance is no guarantee of future results.

Investing involves risk, including loss of principal. 

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, municipal securities including state specific municipal securities, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third parties, and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

This information is not a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager, Estate Attorney) to help answer questions about specific situations or needs prior to taking any action based upon this information.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. 

Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.

(0825-1W97)

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