Important information
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Some references are US specific and may not apply to Canada.
All investing involves risk, including the risk of loss.
Past performance does not guarantee future results.
Investments cannot be made directly in an index.
Diversification does not guarantee a profit or eliminate the risk of loss.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
The US Dollar Index measures the value of the US dollar relative to the majority of its most significant trading partners.
Disinflation, a slowing in the rate of price inflation, describes instances when the inflation rate has reduced marginally over the short term.
Personal consumption expenditures (PCE), or the PCE Index, measures price changes in consumer goods and services. Expenditures included in the index are actual US household expenditures. Core PCE excludes food and energy prices.
The Citi Economic Surprise indexes are quantitative measures of economic news, defined as weighted historical standard deviations of data surprises; a positive reading of the Economic Surprise Index suggests that economic releases have on balance been beating consensus.
Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate. You can lose money.
The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
Fixed income investments are subject to credit risk of the issuer and the effects of changing interest rates. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
Fluctuations in the price of gold and precious metals may affect the profitability of companies in the gold and precious metals sector. Changes in the political or economic conditions of countries where companies in the gold and precious metals sector are located may have a direct effect on the price of gold and precious metals.
The health care industry is subject to risks relating to government regulation, obsolescence caused by scientific advances, and technological innovations.
High yield bonds, or junk bonds, involve a greater risk of default or price changes due to changes in the issuer’s credit quality. The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods.
Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer’s ability to make payments of principal and/ or interest.
Investments in real estate-related instruments may be affected by economic, legal, or environmental factors that affect property values, rents or occupancies of real estate. Real estate companies, including REITs or similar structures, tend to be small and mid-cap companies and their shares may be more volatile and less liquid.
Stocks of small- and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale
A spot price is the current market price at which an asset is bought or sold for immediate payment and delivery.
Spread represents the difference between two values or asset returns.
Tightening monetary policy includes actions by a central bank to curb inflation.
Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations over time.
The STOXX® Europe 600 Index represents large-, mid-, and small-capitalization companies across 17 countries of the European region.
The FTSE 100 Index includes the 100 largest companies in terms of capitalization listed on the London Stock Exchange.
The GFK UK Consumer Confidence Indicator (Consumer Confidence Index) measures overall consumer confidence in the UK.
The ICE Bank of America Euro High Yield Index tracks the performance of euro-denominated below-investment grade corporate debt publicly issued in the euro domestic or Eurobond markets.
The Russell 1000®Growth Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of large-cap growth stocks.
The Russell 1000® Value Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of large-cap value stocks.
The Russell 3000® Value Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of US value stocks.
The Russell 3000® Growth Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of US growth stocks.
A value style of investing is subject to the risk that the valuations never improve or that the returns will trail other styles of investing or the overall stock markets.
The Russell 2000® Index, a trademark/service mark of the Frank Russell Co.®, is an unmanaged index considered representative of the US small-cap stock market.
A basis point is one-hundredth of a percentage point.
Correlation is the degree to which two investments have historically moved in relation to each other.
Credit spread is the difference in yield between bonds of similar maturity but with different credit quality.
The Federal Reserve’s “dot plot” is a chart that the central bank uses to illustrate its outlook for the path of interest rates.
Inflation is the rate at which the general price level for goods and services is increasing.
Monetary easing refers to the lowering of interest rates and deposit ratios by central banks.
Option-adjusted spread (OAS) is the yield spread that must be added to a benchmark yield curve to discount a security’s payments to match its market price, using a dynamic pricing model that accounts for embedded options.
A policy rate is the rate used by central banks to implement or signal their monetary policy stance.
A risk asset is generally described as any financial security or instrument that carries risk and is likely to fluctuate in price.
Purchasing Managers’ Indexes (PMI) are based on monthly surveys of companies worldwide and gauge business conditions within the manufacturing and services sectors.
The Bloomberg US Aggregate Total Return Index is an unmanaged index considered representative of the US investment grade, fixed-rate bond market. The Bloomberg High Yield Total Return Index covers the universe of fixed-rate, non-investment grade debt.
The FTSE NAREIT Index is an unmanaged index considered representative of US REITs.
The opinions referenced above are those of the author as of Sept. 23, 2024. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.