Investment outlook 2022: a warmer cycle


Risk considerations

Yields are subject to change depending on economic conditions. Return is only one factor that should be taken into account when making an investment decision.

Equity securities may fluctuate based on news about businesses, industries, market conditions and the general economic environment.

Obligations 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 purchase risk, ie the risk that the issuer will repay the debt at its option, in whole or in part, before the due date. The market value of debt instruments may fluctuate and the proceeds from sales before maturity may be greater or less than the amount originally invested or the value at maturity due to changes in market conditions or changes in the market. credit quality of the issuer. Bonds are subject to the credit risk of the issuer. This is the risk that the issuer will not be able to pay interest and / or principal on time. Bonds are also subject to reinvestment risk, which is the risk that the principal and / or interest payments of a given investment will be reinvested at a lower interest rate.

Asset allocation and diversification do not guarantee a profit or protect against loss in declining financial markets.

Rebalancing does not protect against loss in declining financial markets. A rebalancing strategy can have a potential tax impact. Investors should consult their tax advisor before implementing such a strategy.

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

International investment involves greater risk, as well as greater potential rewards compared to US investment. These risks include political and economic uncertainties in foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, as these countries may have relatively unstable governments and less established markets and economies.

Invest in foreign emerging markets carries greater risks than those normally associated with national markets, such as political, monetary, economic and market risks.

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

Certain securities mentioned in this document may not have been registered under the US Securities Act of 1933, as amended, and, otherwise, may not be offered or sold absent an exemption. Recipients are required to comply with any legal or contractual restriction regarding their purchase, holding and sale, exercise of their rights or performance of their obligations in connection with any securities / instruments transaction.

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