S&P 500 Index: The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held large-cap US stocks.
Equity securities may fluctuate in response to news about companies, industries, market conditions and the general economic environment.
Obligations are subject to interest rate risk. When interest rates rise, bond prices fall; generally, the longer the maturity of a bond, the more sensitive it is to this risk. Bonds may also be subject to purchase risk, ie the risk that the issuer will repay the debt at its option, in whole or in part, before the scheduled maturity date. The market value of debt securities may fluctuate and the proceeds from sales prior to maturity may be more or less than the amount originally invested or the value at maturity due to changes in market conditions or the quality of issuer credit. Bonds are subject to the credit risk of the issuer. This is the risk that the issuer may not be able to make timely payments of interest and/or principal. Bonds are also subject to reinvestment risk, which is the risk that principal and/or interest payments on a given investment will be reinvested at a lower rate of interest.
Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including higher credit risk and secondary market price volatility. Before investing in high yield bonds, investors should be careful to consider these risks alongside their personal circumstances, objectives and risk tolerance. High yield bonds should only represent a limited part of a balanced portfolio.
Yields are subject to change with economic conditions. Yield is just one of the factors to consider when making an investment decision.
Asset allocation and diversification do not assure a profit or protect against losses in declining financial markets.
Due to their narrow focus, sector investments tend to be more volatile than investments that diversify across many industries and companies. Health Sector Actions are subject to government regulation, as well as government approval of products and services, which can have a significant impact on price and availability, and which can also be significantly affected by rapid obsolescence and expiration patents.
The returns of a portfolio composed mainly of environmental, social and governance sensitive (ESG) investments may be lower or higher than that of a more diversified portfolio or whose decisions are based solely on investment considerations. Because ESG criteria exclude certain investments, investors may not be able to take advantage of the same opportunities or market trends as investors who do not use these criteria. The identified companies and investment examples are for illustrative purposes only and should not be considered a recommendation to buy, hold or sell any securities or investment products. They aim to demonstrate the approaches of managers who favor ESG criteria in their investment strategy. There can be no guarantee that a client’s account will be handled as described herein.
the clues are not managed. An investor cannot invest directly in an index. They are presented for illustrative purposes only and do not represent the performance of any specific investment.
Morgan Stanley Wealth Management is the trading name of Morgan Stanley Smith Barney LLC, a registered broker in the United States. This material has been prepared for informational purposes only and does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell securities or other financial instruments or to participate in any trading strategy. Past performance is not necessarily indicative of future performance.
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