Global Investment Risk: Not All About The Fed

Risk considerations

returns are subject to change with economic conditions. Yield is just one factor to consider when making an investment decision.

Variable income securities may fluctuate in response to news about companies, industries, market conditions and the general economic environment.

Captivity are subject to interest rate risk. When interest rates go up, bond prices go down; Generally, the longer a bond’s maturity, the more sensitive it is to this risk. The bonds may also be subject to redemption risk, which is the risk that the issuer will redeem the debt at its option, in whole or in part, before the scheduled maturity date. The market value of debt instruments may fluctuate and proceeds from sales prior to maturity may be more or less than the amount originally invested or the maturity value due to changes in market conditions or changes in the credit quality of the debt instrument. transmitter. Bonds are subject to the credit risk of the issuer. This is the risk that the issuer may not be able to make interest and/or principal payments on a timely basis. Bonds are also subject to reinvestment risk, which is the risk that principal and/or interest payments on a given investment may be reinvested at a lower rate of interest.

Asset allocation and diversification do not lock in a profit or protect against loss in falling financial markets.

rebalancing it does not protect against a loss in falling financial markets. There may be a potential fiscal implication with a rebalancing strategy. Investors should consult with their tax advisor before implementing such a strategy.

Due to its narrow focus, sector investments they tend to be more volatile than investments that diversify across many sectors and companies. technology stocks it can be especially volatile.

international investment It involves higher risk as well as higher potential rewards compared to American investing. These risks include political and economic uncertainties from foreign countries, as well as the risk of currency fluctuations. These risks are magnified in emerging market countries, as these countries may have relatively unstable governments and less established markets and economies.

Invest in foreign emerging markets It entails greater risks than those normally associated with domestic markets, such as political, exchange, economic and market risks.

Invest in raw materials involves significant risks. Commodity prices may be affected by a variety of factors at any time, including but not limited to (i) changes in supply and demand relationships, (ii) government programs and policies, (iii) political and economic events domestic and international, war and terrorist events, (iv) changes in interest and exchange rates, (v) trading activities in commodities and related contracts, (vi) pestilence, technological changes and weather, and (vii) the volatility of the price of a commodity. Additionally, commodity markets are subject to temporary distortions or other disruptions due to various factors, including illiquidity, the involvement of speculators, and government intervention.

Certain securities referred to in this material may not have been registered under the U.S. Securities Act of 1933, as amended, and may not otherwise be offered or sold without an exemption from the same. Recipients must comply with any legal or contractual restrictions on their purchase, holding and sale, exercise of rights or performance of obligations under any securities/instruments transaction.

Returns on a portfolio composed primarily of environmentally, social and governance (ESG) conscious investments it may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors who do not use ESG criteria. The identified companies and investment examples are for illustrative purposes only and should not be considered a recommendation to buy, hold or sell securities or investment products. Its objective is to demonstrate the approaches taken by managers who focus on ESG criteria in their investment strategy. There can be no guarantee that a customer’s account will be managed as described in this document.

Disclosures

Morgan Stanley Wealth Management is the trading name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. This material has been prepared for informational purposes only and is not an offer to buy or sell or the solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Past performance is not necessarily a guide to future performance.

The authors (if any authors are named) primarily responsible for the preparation of this material are compensated based on various factors, including the quality and accuracy of their work, company revenues (including trading and capital markets revenues ), customer feedback and competitiveness. factors Morgan Stanley Wealth Management is involved in many businesses that may be related to companies, securities or instruments mentioned in this material.

This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any security/instrument, or to participate in any trading strategy. Any such offer would be made only after a prospective investor has completed his or her own independent investigation of the securities, instruments or transactions, and received all information necessary to make his or her own investment decision, including, where appropriate, a review of any offering circular or memorandum describing such security or instrument. That information would contain material information not included in this document and to which potential participants refer. This material is based on public information as of the specified date and may be out of date thereafter. We are not required to tell you when the information in this document may change. We make no representations or warranties regarding the accuracy or completeness of this material. Morgan Stanley Wealth Management is under no obligation to provide updated information on the securities/instruments mentioned in this document.

The securities/instruments discussed in this material may not be appropriate for all investors. The suitability of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Morgan Stanley Wealth Management recommends that investors independently evaluate specific investments and strategies, and encourages investors to seek the advice of a financial advisor. The value and income of investments may vary due to changes in interest rates, exchange rates, default rates, prepayment rates, prices of securities/instruments, market indices, operating or financial conditions of companies and other issuers. or other factors. Estimates of future performance are based on assumptions that may not be realized. Actual events may differ from those assumed and changes in any assumptions may have a material impact on any projections or estimates. Other events not taken into account may occur that may materially affect projections or estimates. Certain assumptions may have been made for modeling purposes solely to simplify the presentation and/or calculation of any projections or estimates, and Morgan Stanley Wealth Management makes no representation that such assumptions reflect actual future events. Accordingly, there can be no assurance that estimated returns or projections will be realized or that actual returns or performance results will not differ materially from those estimated in this document.

This material should not be viewed as advice or a recommendation regarding asset allocation or any particular investment. This information is not intended to be, and should not be, a primary basis for any investment decision you may make. Morgan Stanley Wealth Management is not acting as a fiduciary under the Employee Retirement Income Security Act of 1974, as amended, or under section 4975 of the Internal Revenue Code of 1986, as amended in providing this material, except Otherwise provided by Morgan Stanley in writing and/or as described at www.morganstanley.com/disclosures/dol.

Morgan Stanley Smith Barney LLC, its affiliates, and Morgan Stanley financial advisors do not provide legal or tax advice. Each client should always consult their personal tax and/or legal advisor for information about their individual situation and for any potential tax or other implications that may result from acting on a particular recommendation.

Morgan Stanley Wealth Management Australia Pty Ltd (ABN 19 009 145 555, Australian Financial Services Licensee No. 240813) is disseminating this material in Australia to “retail clients” within the meaning of the Australian Companies Act.

Morgan Stanley Wealth Management is not incorporated under the law of the People’s Republic of China (“PRC”) and the material in connection with this report is made outside of the People’s Republic of China. This report will be distributed only at the request of a specific recipient. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities in the People’s Republic of China. Investors from the People’s Republic of China must have the relevant qualifications to invest in such securities and must be responsible for obtaining all relevant approvals, licenses, verifications or registrations from the relevant government authorities of the People’s Republic of China.

If your financial advisor is based in Australia, Switzerland or the United Kingdom, please note that this report is distributed by the Morgan Stanley entity where your financial advisor is based, as follows: Australia: Morgan Stanley Wealth Management Australia Pty Ltd (ABN 19 009 145 555, AFSL #240813); Switzerland: Morgan Stanley (Switzerland) AG regulated by the Swiss Financial Market Supervisory Authority; o United Kingdom: Morgan Stanley Private Wealth Management Ltd, authorized and regulated by the Financial Conduct Authority, approves, for the purposes of section 21 of the Financial Services and Markets Act 2000, this material for distribution in the United Kingdom.

Morgan Stanley Wealth Management is not acting as a municipal adviser to any municipal entity or obligated person within the meaning of Section 15B of the Securities Exchange Act (the “Municipal Adviser Rule”) and the opinions or views contained herein they are not intended to be, and do not constitute, advice within the meaning of the Municipal Assessor Rule.

This material is distributed in the United States of America by Morgan Stanley Smith Barney LLC.

Third party data providers make no warranties or representations of any kind regarding the accuracy, completeness, or timeliness of the data they provide and shall not be liable for any damages of any kind related to such data.

This material, or any part thereof, may not be reprinted, sold, or redistributed without the written consent of Morgan Stanley Smith Barney LLC.

© 2022 Morgan Stanley Smith Barney LLC, Member SIPC.

CRC# 4933950 (09/2022)

Leave a Comment