UBS - Equities



	Equities are an important part of a well-balanced wealth management strategy and should be considered by investors seeking to pursue long-term objectives. Diversification is Key Over time, investors have found that a diversified portfolio of stocks, bonds and cash usually provides one of the best ways to pursue long-term goals while minimizing overall portfolio risk. To appropriately diversify your portfolio, you must determine what percentage should be allocated to stocks and which stocks you should include. Using our proprietary research and tools, we can help you create a disciplined savings and investment strategy that will help determine an appropriate mix of these asset classes while taking into consideration your personal goals and risk tolerance. For more information about equity investing, our proprietary or independent research capabilities, contact one of our Financial Advisors today. Risks Associated with Equity Investing Market Risk: Market risk is the possibility that the investment will decline in value so that when you sell the stock you may receive less than what you paid for it. Political Risk: National, international and political risk is the possibility that a country's government will suddenly change its policies. Wars, embargos, coups and the appointments of individuals with unfavorable economic policies can impact the financial markets. Changes in tax structures as well as changes in bond or stock ratings can result. Economic Risk: Economic risk is the possibility that the economy will suffer a downturn as a whole. An economic downturn generally affects the market as a whole. Industry Risk: Industry risk is the possibility that a specific industry will suffer a downturn. Typically, industries related to the one experiencing problems would suffer as well. Currency Risk: Currency risk is the adverse variation in return or cost resulting from a change in currency exchange rates. This can also be described as the component of return volatility in a cross-border asset class that is due to changes in foreign exchange rates. UBS Wealth Management Research in the U.S. is provided by UBS Financial Services Inc. UBS Financial Services Inc. is a subsidiary of UBS AG. UBS Wealth Management Research and any affiliate of UBS AG may publish research, express opinions or provide recommendations that may be inconsistent with each other and/or may be inconsistent with investing in a specific product. Investors should make their own independent investigation of the merits of investing in any particular product. Two sources of UBS Research are available to you as a UBS client. One source is UBS Wealth Management Research. UBS Wealth Management Research is part of UBS Global Wealth Management & Business Banking (the UBS business group that includes, among others, UBS Financial Services Inc. and UBS International Inc.), whose primary business focus is individual investors. The second source is UBS Investment Research. UBS Investment Research is part of UBS Investment Bank, whose primary business focus is institutional investors. Because both sources of information are independent of one another and reflect the different assumptions, views and analytical methods of the analysts who prepared them, there may exist a difference of opinions between the two sources.