Table: What to Look for
States more dependent on income taxes than sales taxes. Watch out for states or cities where tourism is a major industry.
Bonds rated A to AAA by Standard & Poor's are safest for investors.
Bonds issued by utilities that provide essential services-electrical, water, and sewerage-are recession-resistant.
Bonds with maturities of 7 to 15 years offer yields almost as high as 30-year bonds with much less interest-rate risk.
Buy callable bonds. Relative to noncallable bonds, yields are much higher.