60/40 Balanced Portfolio: Rethinking Strategies – Morgan Stanley | Jewelry Dukan


Index Definitions

S&P 500 Index: The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-cap US stocks.

For index, indicator and survey definitions referenced in this report please visit: https://www.morganstanley.com/wealthinvestmentsolutions/wmir definitions

risk considerations

Investments in foreign markets carries greater risks than those normally associated with domestic markets, such as B. political risks, currency risks, economic risks and market risks. These risks are amplified in countries with Emerging and Frontier Marketsas these countries may have relatively unstable governments and less established markets and economies. Investing in currency entails additional special risks, such as B. Credit risk, interest rate fluctuations, investment risk in derivatives and domestic and international inflation rates, which can be volatile and less liquid than other securities and more sensitive to the effects of different economic conditions. In addition, international investing carries greater risk and potential rewards compared to US investing. These risks include political and economic uncertainties abroad and the risk of currency fluctuations.

equity securities may fluctuate in response to news about companies, industries, market conditions and the general economic environment.

Bind subject to interest rate risk. When interest rates rise, bond prices fall; The longer the maturity of a bond, the more vulnerable it is to this risk. Bonds may also be subject to call risk, which is the risk that the issuer may, at its discretion, redeem all or part of the debt before its scheduled maturity date. The market value of debt instruments may fluctuate and proceeds from sales before maturity may be higher or lower than the amount originally invested or the maturity value due to changes in market conditions or changes in the issuer’s credit quality. 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 from a particular investment will be reinvested at a lower interest rate.

Bonds rated below investment grade may have speculative characteristics and involve significant risks in excess of those of other securities, including greater credit risk and secondary market price volatility. Investors should carefully consider these risks, along with their individual circumstances, goals and risk appetite before investing in high yield bonds. High yield bonds should make up only a limited part of a balanced portfolio.

Asset Allocation and Diversification do not guarantee a profit or protect against losses in falling financial markets.

value investing guarantees no profit and eliminates no risk. Not all companies whose stocks are considered value stocks can reverse their business or successfully employ corrective strategies that would result in stock prices not rising as originally expected.

growth investments guarantees no profit and eliminates no risk. The stocks of these companies can be relatively highly valued. Because of these high valuations, investing in a growth stock can be riskier than investing in a company with more modest growth expectations.

alternative investments can be either traditional alternative investment vehicles such as hedge funds, hedge funds of funds, private equity, private real estate and managed futures, or non-traditional products such as mutual funds and exchange traded funds, which also seek alternative exposure but have distinct differences from traditional alternative investments. Risks of traditional alternative investments may include: may be highly illiquid, speculative and not suitable for all investors, loss of all or a substantial portion of your investment due to leverage, short selling or other speculative practices, volatility of returns, restrictions on B Transfer of shares in a fund, potential lack of diversification and consequent higher risk due to the concentration of trading powers when using a single adviser, lack of valuation and pricing information, complex tax structures and delays in tax reporting, less regulation and higher fees than open ended Investment funds and risks associated with the operations, staff and processes of the manager. Non-traditional alternative strategy products may employ various investment strategies and techniques for both hedging and more speculative purposes such as short selling, leverage, derivatives and options, which may increase volatility and the risk of investment loss. These investments are subject to the risks normally associated with debt instruments and also involve significant additional risks. Investors could lose all or a substantial portion of their investment. These investments typically have higher fees or expenses than traditional investments.

Treasury Inflation Protection Securities (TIPS) Coupon payments and underlying capital are automatically increased to offset inflation by tracking the Consumer Price Index (CPI). While the real rate of return is guaranteed, TIPS tend to offer a low rate of return. Because the return on TIPS is indexed to inflation, TIPS can perform significantly worse than traditional US Treasuries during periods of low inflation.

The return on a portfolio that consists primarily of Environmentally, Socially and Governance (ESG) Conscious Investing may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors who do not use such criteria. The companies and investment examples mentioned are for illustrative purposes only and should not be construed as a recommendation to buy, hold or sell any security or investment product. They are intended to show the approaches of managers who base their investment strategy on ESG criteria. There is no guarantee that a customer’s account will be managed as described here.

income are subject to economic changes. Yield is just one factor that should be considered when making an investment decision.

rebalancing does not protect against a loss in falling financial markets. A rebalancing strategy may have potential tax implications. Investors should consult their tax advisor before implementing any such strategy.

That indices are uncultivated. An investor cannot invest directly in an index. They are for illustrative purposes only and do not represent the performance of any particular investment.

That Indices selected by Morgan Stanley Wealth Management Measure performance are representative of broad asset classes. Morgan Stanley Wealth Management reserves the right to change representative indices at any time.


Morgan Stanley Wealth Management is the trading name of Morgan Stanley Smith Barney LLC, a United States registered broker-dealer. 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 security or other financial instrument, 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 adviser for information regarding their individual situation and for information on any potential tax or other implications that may result from the implementation of any particular recommendation.

This material is distributed in the United States by Morgan Stanley Smith Barney LLC.

© 2022 Morgan Stanley Smith Barney LLC. Member SIPC.

CRC no. 4912199 (08/2022)

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