Index definitions
S&P 500 index: The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-cap U.S. stocks.
Risk considerations
Equity securities may fluctuate in response to news about companies, industries, market conditions and the general economic environment.
The value of fixed-interest securities varies and may be worth more or less when sold than the original purchase or maturity value. Bonds are subject to interest rate risk, call risk, reinvestment risk, liquidity risk and credit risk of the issuer.
High yield bonds (bonds with a rating below investment grade) may have speculative characteristics and involve significant risks beyond those of other securities, including increased credit risk, price volatility and limited liquidity in the secondary market. High-yield bonds should only make up a limited portion of a balanced portfolio.
Companies pay Dividends can reduce or reduce payouts at any time.
Asset allocation and diversification They do not guarantee a profit or protect against loss in declining financial markets.
Investments in small and medium-sized companies involve special risks such as limited product lines, markets and financial resources, as well as greater volatility than securities of larger, more established companies.
Because of their narrow focus Industry investments tend to be more volatile than investments that diversify across many sectors and companies. Technology stocks can be particularly volatile. Risks for companies in the Energy and natural resources Sectors include commodity price risk, supply and demand risk, depletion risk and exploration risk. Healthcare stocks are subject to government regulations and government approval of products and services, which can have a significant impact on price and availability and can also be significantly affected by rapid obsolescence and patent expiration.
The Indices are not managed. An investor cannot invest directly in an index. They are for illustrative purposes only and do not represent the performance of any particular investment.
The Indices selected by Morgan Stanley Wealth Management to measure performance are representative of broad asset classes. Morgan Stanley Wealth Management reserves the right to change representative indices at any time.
Disclosure
Morgan Stanley Wealth Management is the trading name of Morgan Stanley Smith Barney LLC, a broker-dealer registered 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 any securities or other financial instruments or to participate in any trading strategy. Past performance is not necessarily indicative on 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 their personal tax and/or legal advisor for information regarding their individual situation and to inform themselves about possible tax or other consequences that may arise from the implementation of a particular recommendation.
This material or any portion thereof may not be reprinted, sold or distributed without the written consent of Morgan Stanley Smith Barney LLC.
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SFB#6075481 (11/2023)
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