4Q18 Multi-Asset Outlook: How Late in the Cycle Are We?
1 Beta is a measure of risk that indicates the price sensitivity of a security or a portfolio relative to a specified market index.
2 Duration is a measure of the sensitivity of an investment’s price to nominal interest-rate movement.
3 A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates. A flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality.
4 The National Federation of Independent Business is the largest small business association in the US.
5 A spread is the difference between the bid and the ask price of a security or asset.
Important Risks: Investing involves risk, including the possible loss of principal. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets. • Mid-cap securities can have greater risks and volatility than large-cap securities. • Commodity investments are subject to additional risks.
• Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Investments in high-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • Loans can be difficult to value and highly illiquid; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment and insolvency risks. • The value of inflation-protected securities (IPS) generally fluctuates with changes in real interest rates, and the market for IPS may be less developed or liquid, and more volatile, than other securities markets. • U.S. Treasury securities are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest.
The views expressed here are those of Nanette Abuhoff Jacobson. They should not be construed as investment advice. They are based on available information and are subject to change without notice. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams and different fund sub-advisers may hold different views and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Wellington Management or Hartford Funds.