Investment Risks

Many new investors, particularly young investors, are looking for high returns without fully appreciating the associated risks. Because of the inherent risk of loss associated with investing, we are unable to represent, guarantee, or even imply that our services and methods of analysis can or will: predict future results, successfully identify market tops or bottoms, or insulate you from losses due to market corrections or declines. You should be aware that your account is subject to the following risks:

  • Stock Market Risk – The value of securities in the portfolio will fluctuate and, as a result, the value may decline suddenly or over a sustained period of time.
  • Managed Portfolio Risk – The manager's investment strategies or choice of specific securities may be unsuc¬cessful and may cause the portfolio to incur losses.
  • Industry Risk – The portfolio's investments could be concen¬trated within one industry or group of industries. Any factors detrimental to the performance of such industries will disproportionately impact your portfolio. Investments fo¬cused in a particular industry are subject to greater risk and are more greatly impacted by market volatility than less concentrated investments.
  • Non-U.S. Securities Risk – Non-U.S. securities are sub¬ject to the risks of foreign currency fluctuations, generally higher volatility and lower liquidity than U.S. securities, less developed securities markets and economic sys¬tems and political and economic instability.
  • Emerging Markets Risk – To the extent that your portfolio in¬vests in issuers located in emerging markets, the risk may be heightened by political changes and changes in taxation or currency controls that could adversely affect the values of these investments. Emerging markets have been more volatile than the markets of developed coun¬tries with more mature economies.
  • Currency Risk – The value of your portfolio's investments may fall as a result of changes in exchange rates.
  • Interest Rate Risk. The value of fixed income securities rises or falls based on the underlying interest rate environment. If rates rise, the value of most fixed income securities could go down.
  • Credit Risk. Most fixed income instruments are dependent on the underlying credit of the issuer. If we are wrong about the underlying financial strength of an issuer, we may purchase securities where the issuer is unable to meet its obligations. If this happens, your portfolio could sustain an unrealized or realized loss.
  • Inflation Risk. Most fixed income instruments will sustain losses if inflation increases or the market anticipates increases in inflation. If we enter a period of moderate or heavy inflation, the value of your fixed income securities could go down, in the case of sever inflation many, if not all investments may lose value.
  • ETF and Mutual Fund Risk – When we invest in an ETF or mutual fund for a client, the client will bear additional expenses based on its pro rata share of the ETFs or mutual fund's operating expenses, including the potential duplication of management fees. The risk of owning an ETF or mutual fund generally reflects the risks of owning the underlying securities the ETF or mutual fund holds. Clients may also incur brokerage costs when purchasing ETFs.
  • Management Risk – Your investment with us varies with the success and failure of our investment strategies, research, analysis and determination of portfolio securities. If our investment strategies do not produce the expected returns, the value of the investment will decrease.
  • Options Risk – Options on securities may be subject to greater fluctuations in value than an investment in the underlying securities. Purchasing and writing put and call options are highly specialized activities and entail greater than ordinary investment risks.
  • Political Risks – Acts of terrorism and the fickleness of politicians in combining of “crony” capitalism cannot be predicted.

Risk Tolerance & Investment Financial Discovery Information

Before you invest in anything, you should determine how you feel about the potential of losing money in a down market. Upon reflection, you may determine that high return investments are actually not your best choice. Download the Risk Tolerance Customer Assessment.


1

Analyze your current situation, risk tolerance, time horizon, and goals


2

Open your account


3

Monitor and rebalance investments