Asset class skittles_2014
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The document discusses the importance of diversification in investing, noting that it does not guarantee profits or prevent losses. It highlights various investment indices, including the S&P 500 and MSCI EAFE, and emphasizes the risks of foreign securities and changing market conditions. Additionally, it clarifies that past performance is not indicative of future results and mentions that all investments carry inherent risks.
Asset class skittles_2014
- 1. Highest Return Lowest Return The Need for Diversification Diversification does not guarantee a profit or protect against a loss. Data Sources: S&P 500, MSCI EAFE Index, FTSE NAREIT Equity REITs, MSCI Pacific ex Japan Index, MSCI Emerging Markets Index, IA SBBI US Inflation Index: Morningstar Direct. Fama/French US Small Value Index (ex utilities), Small Growth Index (ex utilities), Large Value Index (ex utilities), Large Growth Index (ex utilities), Five-Year US Treasury Notes: Dimensional Returns version 2.3, January 2015. All investments involve risk, including the loss of principal and cannot be guaranteed against loss by a bank, custodian, or any other financial institution. Foreign securities involve additional risks, including foreign currency changes, political risks, foreign taxes, and different methods of accounting and financial reporting. Past performance is not indicative of future performance. Treasury notes are guaranteed as to repayment of principal and interest by the U.S. government. This information does not constitute a solicitation for sale of any securities. S&P 500 Index is the Standard & Poor’s 500 Index. The S&P 500 Index measures the performance of large-capitalization U.S. stocks. The S&P 500 is an unmanaged market value-weighted index of 500 stocks that are traded on the NYSE, AMEX and NASDAQ. The weightings make each company’s influence on the index performance directly proportional to that company’s market value. The MSCI EAFE Index (Morgan Stanley Capital International Europe, Australasia, Far East Index) is comprised of over 1,000 companies representing the stock markets of Europe, Australia, New Zealand and the Far East, and is an unmanaged index. EAFE represents non-U.S. large stocks. Consumer Price Index (CPI) is a measure of inflation. REITs, represented by the NAREIT Equity REIT Index, is an unmanaged market cap-weighted index comprised of 151 equity REITS. Emerging Markets index represents securities in countries with developing economies and provide potentially high returns. Many Latin American, Eastern European and Asian countries are considered emerging markets. Indexes are unmanaged baskets of securities without the fees and expenses associated with mutual funds and other investments. Investors cannot directly invest in an index. LWI Financial Inc. (“Loring Ward”) is an investment adviser registered with the Securities and Exchange Commission. Securities transactions may be offered through Loring Ward Securities Inc., an affiliate, member FINRA/SIPC. IRN R 13-091 (Exp 3/15) Asset Class Index Performance 2000 – 2014