Although the U.S. economy will be the brightest spot globally for the coming year, investors also should look abroad for strong dividend yields, says Capital Group in its 2016 Outlook, which will be released in its entirety in January.

Capital Group, an institutional investor and parent company of American Funds with $1.4 trillion in assets, says investors will need to look beyond the U.S. to global prospects for strong dividend yields. “For example, certain majority equity indexes, such as Australia, are providing double the returns of the U.S.,” Capital Group points out.

The firm also predicts municipal bonds will provide a safe haven for investors to hedge against volatility while paying strong yields. Research is the key to finding the right munis, Capital Group says.

Although the U.S. Federal Reserve recently raised interest rates, they will remain relatively low and investors would do well to keep a select group of high-yield bonds in the portfolios, the report says.

These three strategies should keep investors in good shape in 2016, although the markets are likely to remain volatile, says Capital Group.

Capital Group predicts the U.S. economy will be the bright spot on the global scene with expansion driven by a wide variety of industries that are exposed to rising consumption, despite pressure on energy and industrial companies.

At the same time, “the European economy will get a boost mainly from quantitative easing by the European Central Bank pushing down the value of the euro, which also makes stocks cheap for U.S. investors. Emerging markets are dicey, given setbacks in the BRIC economies, but bargains remain,” Capital Group predicts.