Disclosure:
Index definition
S&P 500 index: The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held large-cap stocks in the United States.
For definitions of the indices, indicators and studies referenced in this report, please visit: https://www.morganstanley.com/wealth-investmentsolutions/wmir-definitions
Hypothetical performance
General: Hypothetical performance should not be considered a guarantee of future performance or achievement of overall financial objectives. Asset allocation or diversification does not guarantee a profit or protect against loss in a downturn in financial markets.
Hypothetical performance results are subject to inherent limitations. The performance shown here is simulated performance and not investment results from an actual portfolio or actual trades. There could be significant differences between hypothetical and actual performance results.
Despite the limitations of hypothetical performance, these hypothetical performance results have the potential to help clients and financial advisors understand the risk-return tradeoffs of various asset allocation configurations.
Investing in the market involves market fluctuation risk. The value of all types of securities can increase or decrease over different periods of time.
This analysis is not intended to recommend or implement any investment strategy. This analysis may use financial projections, rates of return, risk, inflation, and other assumptions as a basis for discussion. They should not be considered a guarantee of future performance or achievement of overall financial objectives. No analysis has the ability to accurately predict the future, eliminate risk, and guarantee investment results. Investment returns, inflation, taxes and other economic conditions will differ from the assumptions used in this analysis, so actual results will differ (possibly materially) from those shown in this analysis.
The assumed rate of return in this analysis does not reflect any particular investment and does not include fees or expenses that may be incurred by investing in a particular product. Actual returns on a particular investment may be more or less than the returns used in this analysis. The rate of return assumption is based on the hypothetical rate of return of a security index that serves as a proxy for the asset class. Additionally, different forecasts may select different indices as proxies for the same asset class, which may impact returns for that asset class.
Risk considerations
stock They can fluctuate in response to news about companies, industries, market conditions and the general economic environment.
The value of the bond fluctuates, so when sold, it may be worth more or less than its original price or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk, and issuer credit risk.
Investment in overseas markets They involve greater risks than those typically associated with domestic markets, including political, currency, economic, and market risks. investment in currency They involve additional special risks, such as credit, interest rate fluctuations, derivative investment risks, and domestic and foreign inflation rates, which can be volatile, less liquid than other securities, and more sensitive to various economic conditions. There is a gender. Additionally, international investments involve greater risks and greater potential rewards compared to investments in the United States. These risks include foreign political and economic uncertainties and currency fluctuation risks. These risks are heightened in emerging market economies because their governments may be more unstable and their markets and economies may be less established.
value investing It does not guarantee profit or eliminate risk. Not all companies that hold stocks that are considered value stocks will be able to turn their businesses around or adopt corrective strategies successfully, and as a result, their stock prices may not rise as originally expected.
growth investment It does not guarantee profit or eliminate risk. The stocks of these companies may be relatively highly valued. Because of these high valuations, investing in growth stocks can be riskier than investing in companies with less expected growth.
companies that pay dividend You can reduce or reduce your payments at any time.
Asset allocation and diversification It does not guarantee a profit or protect against loss in a declining financial market.
Investing in small businesses They involve special risks, such as limited product lines, markets, and funding sources, and greater volatility than securities of larger, more established companies.
Investing in commodities Involves significant risks. Commodity prices at any time are subject to a variety of factors, including but not limited to: (i) changes in the relationship between supply and demand, (ii) government plans and policies, and (iii) domestic and international political and economic events, wars, etc. may be influenced by factors. (iv) changes in interest rates and exchange rates; (v) trading activity in products and related contracts; (vi) epidemics, technological changes and weather; and (vii) fluctuations in the prices of products. Additionally, commodity markets are subject to temporary distortions and disruptions due to a variety of factors, including lack of liquidity, speculator participation, and government intervention.
physical precious metals This is an unregulated product. Precious metals are speculative investments and are subject to short- and long-term price fluctuations. The value of precious metal investments can be volatile and may rise or fall depending on market conditions. If sold in a down market, the price you receive may be less than your original investment. Unlike bonds and stocks, precious metals do not pay interest or dividends. Therefore, precious metals may not be suitable for investors who need recurring income. Precious metals are commodities that must be stored securely and may incur additional costs to investors. The Securities Investor Protection Corporation (“SIPC”) provides certain protection for customers' cash and securities in the event of a securities firm's bankruptcy, other financial distress, or loss of customer assets. SIPC insurance does not cover precious metals or other products.
REIT investment The risks are similar to those associated with direct investment in real estate. These include fluctuations in real estate values, lack of liquidity, limited diversification, and sensitivity to economic factors such as interest rate fluctuations and market downturns.
Due to the narrow focus, Investing in the sector They tend to be more volatile than investments spread across many sectors and companies. technology stocks It can be especially unstable.Risks applicable to companies energy and natural resources Sectors include commodity price risk, supply and demand risk, depletion risk, and exploration risk. healthcare sector stocks Products and services are subject to government regulation and approval, which can significantly impact price and availability, and can also be significantly affected by rapid obsolescence and patent expiration dates. There is a gender.
Portfolio income primarily consisting of: Environmentally, socially and governance-conscious investing (ESG) It may be lower or higher than a more diversified portfolio or one in which 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 and market trends as investors who do not use such criteria. The companies and investment examples identified are for illustrative purposes only and should not be considered a recommendation to buy, hold, or sell any securities or investments. These are intended to demonstrate the approach adopted by a manager who focuses on his ESG criteria in his investment strategy. There is no guarantee that Client's account will be managed as described herein.
yield Subject to change depending on economic conditions. Yield is just one factor to consider when making investment decisions.
all kinds of Continuous or periodic investment plan There is no guarantee of a profit or protection against loss in a declining market. Because such plans involve continued investment in securities regardless of fluctuations in the security's price level, investors must consider their financial ability to continue making purchases through periods of low price levels. there is.
of index Not managed. Investors cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any particular investment.
of Index selected by Morgan Stanley Wealth Management The assets used to measure performance represent a wide range of asset classes. Morgan Stanley Wealth Management reserves the right to change the representative index at any time.
disclosure
Morgan Stanley Wealth Management is a trading name of Morgan Stanley Smith Barney LLC, a registered U.S. broker-dealer. This material has been prepared for informational purposes only and is not an offer to buy or sell any security or other financial instrument, or a solicitation to participate in any buying or selling strategy.Past performance is not necessarily an indicator of future performance
Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors do not provide legal or tax advice. Each client should always consult his or her personal tax advisor and/or legal advisor for information regarding his or her personal situation and to learn of any tax or other consequences that may result from acting on a particular recommendation. You should consult your advisor.
This material or any portion thereof may not be reproduced, sold, or redistributed without the written consent of Morgan Stanley Smith Barney LLC.
© 2023 Morgan Stanley Smith Barney LLC, Member SIPC.
CRC# 5993648 (October 2023)
