Quantitative tightening: are the markets prepared?
Yields are subject to change with economic conditions. Yield is just one of the factors to consider when making an investment decision.
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.
Asset allocation and diversification do not assure a profit or protect against losses in declining financial markets.
Rebalancing does not protect against a loss in the event of a decline in the financial markets. There may be potential tax implications with a rebalancing strategy. Investors should consult their tax advisor before implementing such a strategy.
Due to their narrow focus, sector investments tend to be more volatile than investments that diversify across many industries and companies. Tech stocks can be particularly volatile.
International investment involves higher risk, as well as greater potential returns than US investments. These risks include political and economic uncertainties in foreign countries as well as the risk of currency fluctuations. These risks are amplified in countries with emerging markets, as these countries may have relatively unstable governments and less established markets and economies.
Investing in foreign emerging markets involves greater risks than those normally associated with domestic markets, such as political, monetary, economic and market risks.
Invest in commodities 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) programs and policies government, (iii) national and international political and economic events, war and terrorist events, (iv) changes in interest and exchange rates, (v) commodity trading activities and related contracts, (vi) plague, technological changes and weather conditions, and (vii) commodity price volatility. In addition, commodity markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation by speculators and government intervention.
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