Morgan Stanley Investment Management has released new material regarding the current state of risk assets and the global economy. According to the Broad Markets Fixed Income team, there is a rebound in risk assets, suggesting resilience amid economic uncertainty. The team combines expertise from various sectors within Morgan Stanley's fixed income platform to identify promising opportunities.
The report notes that market risks are prevalent and can lead to fluctuations in security values due to various events like natural disasters or geopolitical tensions. "There is no assurance that a portfolio will achieve its investment objective," the document states, emphasizing the unpredictability of market conditions.
Investors are advised to consider their ability to invest long-term, particularly during market downturns. It highlights that fixed-income securities face specific risks such as credit risk and interest rate changes. "In a rising interest-rate environment, bond prices may fall," which could increase volatility and affect portfolio liquidity.
The material also outlines that investment strategies might not work under all conditions, advising investors to evaluate their situations carefully before making decisions. It mentions separately managed accounts may not be suitable for everyone due to differing performance from indices.
Morgan Stanley stresses that this communication is for informational purposes only and does not constitute an offer or recommendation for any specific investment strategy. Investors are urged to seek independent legal and financial advice prior to making any decisions.
The material further clarifies its intended audience across different regions including EMEA, Middle East, US, Latin America, Asia Pacific, Australia, and Japan. It emphasizes compliance with local laws and regulations concerning distribution and availability of this information.
Eaton Vance is part of Morgan Stanley Investment Management which collaborates with affiliates such as Eaton Vance Advisers International Ltd., Calvert Research and Management among others in marketing each other’s products globally under appropriate regulatory frameworks.
###