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.


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