Investments in stocks and bonds issued by non-U.S. companies are subject to risks including country/regional risk, which is the chance that political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issued by companies in foreign countries or regions; and currency risk, which is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates. These risks are especially high in emerging markets.
Master Limited Partnerships (“MLPs”) are complex products and are not suitable for all investors. MLP units carry notable risk as the units represent equity investments concentrated in the energy sector and may have complicated tax reporting requirements. Investments that concentrate on a relatively narrow market sector face the risk of higher price volatility. MLP risks associated with adverse economic, environmental or regulatory occurrences affecting the energy sector, and a downturn in the energy sector could have a larger impact on the MLP than on investments that are broadly diversified across many sectors and industries. Energy companies are subject to significant foreign, federal, state and local regulation and their profitability could be adversely affected by changes in the regulatory environment.
The Cboe Volatility Index (“VIX”) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. The Standard & Poor’s (S&P) 500 Index is a market value weighted index that consists of 500 stocks chosen for market size, liquidity and industry grouping, among other factors, and it is designed to be a leading indicator of U.S. equities and meant to reflect the risk/return characteristics of a large cap universe. The Barclays Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four local currency markets. The Barclays U.S. Aggregate Bond Index is a market value weighted index that measures the performance of the total U.S. investment-grade bond index, including investment grade U.S. Treasury bonds, government-related bonds, corporate bonds, mortgage-backed pass-through securities, commercial mortgage-backed securities and asset-backed securities that are publicly offered for sale in the U.S. Indices may not be invested in directly.
Risk Scores are calculated using a long-term average of 10.4% for the S&P 500, 200bps change in the Ten Year US Treasury Rate, and correlation and volatility data from 2008 to present. Performance information used in the Risk Score calculation is at the individual mutual fund, Exchange Traded Fund (ETF), and other investment level. Riskalyze uses actual historical data to calculate the statistical probabilities. Riskalyze does not provide investment analysis on investments with less than 6 months of historical performance. In instances where an investment’s inception is more recent than January 1, 2008 and greater than 6 months Riskalyze will use correlation statistics from the investments actual trading history to extrapolate missing volatility data. In most cases the extrapolation calculation increases the risk. The Risk Score represents a hypothetical statistical probability, but there is no guarantee any investments would perform within the range. The information generated by Riskalyze does not reflect actual investment results and is not a guarantee of future results. The Risk Score calculation figures may exclude commissions, sales charges or fees which, if included, would have a negative effect on the annual returns. Lucia Capital Group, Lucia Securities and LCM Investment Management (“LCM”) are not affiliated with Riskalyze, Inc., an investment research and management firm. LCM is relying upon the information provided by Riskalyze, Inc., and has not audited or otherwise verified the accuracy of the investment performance or other information. As a result, the information regarding performance results and portfolio characteristics presented in Riskalyze Reports or Risk Scores are not guaranteed by LCM.
Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised by LCM) will be either suitable or profitable for a client's or prospective client's portfolio and may result in a loss of principal. Accordingly, no client or prospective client should assume that the discussions in this presentation shall serve as the receipt of, or a substitute for, personalized advice from LCM, LCG or from any other investment professional. Opinions and forecasts are those of the individual as of November 8, 2017, may or may not come to pass, and are subject to change without notice. Past performance is no guarantee of future results.
Raymond J Lucia, Jr and Joseph P Lucia are registered representatives of an offer securities through Lucia Securities, LLC (“LSL”), a registered broker dealer, member FINRA/SIPC. Advisory services offered through Lucia Capital Group (“LCG”), a registered investment advisor and affiliate of Lucia Securities.
LCM Investment Management, LLC (dba Lucia Capital Management) is a registered investment advisor offers model portfolio advisory services to LCG and is under common ownership and control with LCG and LSL. Mark Scalzo, Aaron Rosen and Tom Wyckoff are registered representatives of LSL. Chris Mendoza, Ian Lucas, Lance Helfert and Zach Leeds are associated persons of LSL. CAA-11232 (11/17)