A demographic shift is taking place in the global economy, with millennials and Generation Z gaining economic influence through their preferences for technology, sustainability, and new consumption habits. At the same time, aging populations, particularly Baby Boomers, are increasing their share of healthcare spending, financial assets, and political influence.
Jitania Kandhari, Managing Director of the Emerging Markets Equity Team at Morgan Stanley Investment Management (MSIM), and Audrey Muhirwa, Associate, highlighted these trends in a recent communication.
The authors noted that there is no assurance that any investment portfolio will achieve its objectives. They cautioned: "Portfolios are subject to market risk, which is the possibility that the market values of securities owned by a portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts and social unrest) that affect markets, countries, companies or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in a portfolio."
They also pointed out specific risks associated with equity securities as well as investments in foreign and emerging markets: "In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries."
Charts and graphs provided were described as illustrative only; past performance does not guarantee future results.
Kandhari and Muhirwa stated: "There is no guarantee that any investment strategy will work under all market conditions," advising investors to evaluate their ability to invest long-term during downturns.
The material clarified it was prepared from publicly available information as well as internal data believed reliable but not independently verified by MSIM.
According to disclosures included by MSIM: "The views and opinions and/or analysis expressed are those of the author or the investment team as of the date of preparation of this material and are subject to change at any time without notice due to market or economic conditions and may not necessarily come to pass." They further added: "The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively 'the Firm'), and may not be reflected in all the strategies and products that the Firm offers."
Forecasts presented were described as speculative with outcomes dependent on changes in markets or economic conditions.
Morgan Stanley Investment Management emphasized this communication was for informational purposes only—not an offer or recommendation—and should not be considered investment advice nor tax or legal guidance.
Eaton Vance forms part of Morgan Stanley Investment Management's asset management division.
Distribution details indicated this material would only be shared where local laws allow. MSIM’s affiliates include Eaton Vance Management (International) Limited among others; each affiliate operates under regulation appropriate for its jurisdiction.
Disclosures outlined regional regulatory requirements across EMEA countries including Ireland (where MSIM Fund Management Ireland Limited is regulated by the Central Bank), Switzerland (regulated by FINMA), Dubai (regulated by DFSA), Asia Pacific regions such as Hong Kong (for professional investors only), Singapore (for institutional investors), Australia (for wholesale clients), Japan (for professional investors), Latin America (institutional/qualified investors only), among others.