The opinions expressed are those of Northwestern Mutual Wealth Management Company as of the date hereof and are subject to change. There is no guarantee that any predictions made will come true. This material does not constitute advice to individual investors and does not recommend any particular investment or security. Information and opinions are obtained from proprietary and non-proprietary sources.
Northwestern Mutual is the marketing name for Northwestern Mutual Life Insurance Company (NM) and its subsidiaries, located in Milwaukee, Wisconsin. Investment brokerage services are provided through Northwestern Mutual Investment Services, LLC (NMIS), a subsidiary of NM, a broker-dealer and registered investment advisor, member FINRA and SIPC. Investment advisory and fiduciary services are provided through Northwestern Mutual Wealth Management Company® (NMWMC), a subsidiary of NM and a federal savings bank located in Milwaukee, Wisconsin. The products and services referenced are offered and sold only by properly appointed and licensed entities, financial advisors and professionals. Not all products and services are available in all states. Not all Northwestern Mutual representatives are advisors. Only Representatives whose title includes “Adviser” or otherwise identify themselves as advisors to NMWMC will qualify as NMWMC representatives to provide investment advisory services.
Please remember that all investments involve some degree of risk, including the potential loss of principal invested. Indexes and benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance and are not a guarantee of future performance or indicative of any particular investment. Diversification and strategic asset allocation do not guarantee a profit or protect against loss.
Stocks have historically outperformed bonds, but they have also historically been more volatile. Investors should carefully consider whether they can invest during periods of market volatility.
For bonds and bonds, when interest rates rise, the price of the bond typically falls because investors may be able to obtain a higher yield on another bond. Additionally, the longer the maturity of a bond, the greater the risk. When interest rates are at low levels, there is a risk that interest rates will rise significantly in a short period of time, causing the market value of the bonds you own to decline. At maturity, the issuer of the bond is obligated to return the principal amount (principal) to the investor. High-yield bonds carry greater credit risk than higher quality bonds. Fixed income investors must carefully consider risks such as interest rate risk, credit risk, liquidity risk, securities lending risk, repurchase and reverse transaction risks.
Investing in specialized sectors, such as real estate, may be subject to different and greater risks than more diversified investments, and may be subject to greater financial and other risks than investments in large capitalized or experienced companies. The risks may be greater. Declines in real estate values, economic conditions, property taxes, tax laws, and interest rates all pose potential risks to real estate investing.
Investing in real estate companies involves risks associated with direct investments in real estate, including sensitivity to general and local economic and market conditions, demographic trends, changes in interest rates, and governmental actions.
Investors should be aware of the risks of investing in foreign securities, particularly those of companies from developing countries. These include the risks of currency fluctuations, political and economic instability, inadequate governmental oversight and regulation of business and industry practices, and differences in accounting standards.
Commodity prices are more volatile than other asset prices, can be subject to significant losses, and are affected by market events, weather, regulatory and political developments, and global competitive and economic conditions. . Investments can be made directly in physical assets or derivative instruments linked to commodities such as commodity swap contracts or futures contracts.
U.S. Inflation-Protected Securities (TIPS) are securities that are indexed to inflation to protect investors from the negative effects of inflation.
Gross domestic product (GDP) is the amount of goods and services produced in a country in one year.
The U.S. large-cap asset class is measured by the S&P 500 Index, a market-capitalization weighted index of 500 stocks. The S&P 500 Index is designed to measure the performance of the broader national economy through the change in the total market value of 500 stocks representing all major industries.
The U.S. mid-cap asset class is measured by the S&P MidCap 400 index. It is the most widely used index for mid-market companies, covering approximately 7% of the U.S. stock market.
The U.S. small-cap asset class is measured by the S&P Small Cap 600 Index, a market-value-weighted index of 600 U.S. small-cap stocks selected for their market size, liquidity, and representativeness of their industry group.
The international developed markets asset class is measured by the Morgan Stanley Capital International Europe Australia Far East (MSCI EAFE) index. The index consists of all stocks listed in developed markets outside the United States. The MSCI EAFE Index is comprised of indices from 22 developed market countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The international emerging markets asset class is measured by the MSCI Emerging Markets Index, a float-adjusted market capitalization index designed to measure the performance of emerging market equity markets. The MSCI Emerging Markets Index is comprised of 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, and Russia. I am. , South Africa, Taiwan, Thailand, and Türkiye.
The real estate asset class is measured by the Dow Jones US Select REIT Index, which is designed to measure the performance of publicly traded REITs and REIT-like securities. The index is a subset of the Dow Jones US Select Real Estate Securities Index (RESI), which represents U.S.-traded equity real estate investment trusts (REITs) and real estate operating companies (REOCs). The index is made by excluding some companies that make direct investments in real estate whose performance may be influenced by factors other than the value of real estate.
The commodity asset class is measured by the Bloomberg Commodity Index (BCOM) (formerly the Dow Jones UBS Commodity Index), a liquid, diversified, and transparent benchmark of global commodity markets. It is calculated on an excess return basis and reflects price changes in commodity futures.
The Consumer Price Index (CPI) looks at the weighted average of prices for a basket of consumer goods and services, such as transportation, food, and health care.
