Bull market 2022? Reasons to stay cautious

Risk Considerations

Returns are subject to change with economic conditions. Return is only one factor to consider when making an investment decision.

Equities it may vary in response to news about companies, industries, market conditions and the general economic environment.

Bonds they 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 call risk, which is the risk that the issuer will repay the debt of its choice, in whole or in part, before the due date. The market value of debt instruments may fluctuate and proceeds from sales prior to maturity may be higher or lower than the originally invested amount or maturity due to changes in market conditions or the credit quality of the issuer. The bonds are subject to the credit risk of the issuer. This is the risk that the issuer will not be able to make interest and / or principal payments in a timely manner. Bonds are also subject to reinvestment risk, which is the risk that the principal and / or interest paid by a particular investment may be reinvested at a lower interest rate.

Asset allocation and diversification they do not secure a profit or protect against losses in declining financial markets.

Rebalancing it does not protect against a loss in declining financial markets. There could be a potential fiscal implication with a rebalancing strategy. Investors should consult their tax advisor before implementing such a strategy.

Due to their narrow focus, sector investments they tend to be more volatile than investments that diversify across many industries and companies. Technological actions it can be particularly volatile.

International investments involves greater risks and greater potential rewards than US investments. These risks include the political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in emerging market countries, 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, currency, economic and market risks.

Invest in commodities involves significant risks. Commodity prices can be affected by a variety of factors at any time, including but not limited to (i) changes in supply and demand relationships, (ii) government programs and policies, (iii) political events and national and international economic activities, wars and terrorist events, (iv) changes in interest and exchange rates, (v) trading in commodities and related contracts, (vi) plagues, technological changes and weather conditions, and (vii) volatility of the prices of a commodity. In addition, commodity markets are subject to temporary distortions or other disruptions due to various factors, including lack of liquidity, participation of speculators and government intervention.

Certain securities referenced in this material may not have been registered under the US Securities Act of 1933, as amended, and, otherwise, may not be offered or sold without an exemption from it. Recipients are required to comply with any legal or contractual restrictions relating to the purchase, holding and sale, exercise of rights or performance of obligations in the context of any securities / instrument transaction.

The returns of a portfolio consisting primarily of environmental, social and governance aware (ESG) investments it may be smaller or larger than a more diversified portfolio or where decisions are based solely on investment considerations. As the ESG criteria exclude some investments, investors may not be able to take advantage of the same market opportunities or trends as investors who do not use these criteria. The companies identified and investment examples are for illustrative purposes only and should not be construed as a recommendation to buy, hold or sell any securities or investment products. They aim to demonstrate the approaches taken by managers who focus on ESG criteria in their investment strategy. There can be no guarantee that a customer’s account will be managed as described in this document.

Disclosures

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 is not an offer to buy or sell or a solicitation of any offer to buy or sell any securities or other financial instruments or to participate in any trading strategy. Past performance is not necessarily a guide to future performance.

Authors (if there are any authors cited) primarily responsible for the preparation of this material receive compensation based on various factors, including the quality and accuracy of their work, the company’s revenues (including trading revenues and capital markets), customer feedback and competition factors. Morgan Stanley Wealth Management is involved in many activities which may involve companies, securities or instruments mentioned in this material.

This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell any securities / instruments or to participate in any trading strategy. Any such offer would only be made after a prospective investor has completed their independent investigation of the securities, instruments or transactions and received all information necessary to make their investment decision, including, where applicable, a review of any circular. offer or memorandum describing that security or instrument. Such information would contain material information not contained in this document and to which potential participants are referred. This material is based on public information as of the date specified and may be out of date at a later date. We have no obligation to notify you when the information contained herein may change. We make no representations or warranties as to the accuracy or completeness of this material. Morgan Stanley Wealth Management is under no obligation to provide up-to-date information on the securities / instruments mentioned herein.

The securities / instruments discussed in this material may not be appropriate for all investors. The suitability of a particular investment or strategy will depend on the investor’s individual circumstances and objectives. Morgan Stanley Wealth Management recommends that investors independently evaluate specific investments and strategies and encourages investors to seek advice from a financial advisor. The value and income of investments may vary due to changes in interest rates, exchange rates, default rates, prepayment rates, prices of securities / instruments, market indices, operating or financial conditions of companies and other issuers or other factors. Future performance estimates are based on assumptions that may not be realized. Actual events may differ from those assumed and changes to any assumptions can have a significant impact on any projection or estimate. Other events not taken into account can occur and can significantly affect projections or estimates. Certain assumptions may have been made for modeling purposes only to simplify the presentation and / or calculation of projections or estimates and Morgan Stanley Wealth Management does not represent that such assumptions reflect actual future events. Accordingly, there can be no assurance that the estimated returns or projections will be realized or that actual returns or performance results will not differ materially from those estimated herein.

This material should not be viewed as advice or recommendation in relation to asset allocation or any particular investment. This information is not intended and should not be a primary basis for any investment decision you may make. Morgan Stanley Wealth Management is not acting as a fiduciary under either the Employee Retirement Income Security Act of 1974, as amended, or section 4975 of the Internal Revenue Code of 1986, as amended in providing this material, unless otherwise provided in writing. by Morgan Stanley and / or as described at www.morganstanley.com/disclosures/dol.

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