Important information
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All investing involves risk, including the risk of loss.
Past performance does not guarantee future results.
Investments cannot be made directly in an index.
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.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
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.
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.
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.
Investments in companies located or operating in Greater China are subject to the following risks: nationalization, expropriation, or confiscation of property, difficulty in obtaining and/or enforcing judgments, alteration or discontinuation of economic reforms, military conflicts, and China’s dependency on the economies of other Asian countries, many of which are developing countries.
Inflation is the rate at which the general price level for goods and services is increasing.
The Employment Cost Index (ECI) is a quarterly economic series from the US Bureau of Labor Statistics that measures the growth of total employee compensation.
Yield is the income return on an investment.
The Federal Open Market Committee (FOMC) is a 12-member committee of the Federal Reserve Board that meets regularly to set monetary policy, including the interest rates that are charged to banks.
Dovish refers to an economic outlook which generally supports low interest rates as a means of encouraging growth within the economy.
Hawkish is to favor relatively higher interest rates if they are needed to keep inflation in check.
Disinflation, a slowing in the rate of price inflation, describes instances when the inflation rate has reduced marginally over the short term.
Stagflation is an economic condition marked by a combination of slow economic growth and rising prices.
A repricing opportunity is a change in the market environment that allows for a reassessment of the value of an investment.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The STOXX® Europe 600 Index represents large, mid and small capitalization companies across 17 countries of the European region.
A basis point is one hundredth of a percentage point.
The Organization for Economic Co-operation and Development (OECD) is a unique forum where the governments of 37 democracies with market-based economies collaborate to develop policy standards to promote sustainable economic growth.
A flash estimate is a preliminary release of economic data, typically released ahead of the official data release.
Purchasing Managers’ Indexes (PMI) are based on monthly surveys of companies worldwide, and gauge business conditions within the manufacturing and services sectors.
The job openings and labor turnover survey (JOLTS) is a monthly report done by the US Bureau of Labor Statistics that collects data from employers in order to measure job openings, new hires, the number of employees who quit or were laid off, and other forms of labor turnover.
The eurozone (also known as the euro area or euroland) is an economic and monetary union of European Union member states that have adopted the euro as their common currency.
Tightening monetary policy includes actions by a central bank to curb inflation.
The opinions referenced above are those of the author as of May 6, 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.