What can economic and financial market history teach investors? The particular circumstances may change from one period to the next, but basic human behavioral patterns have remained relatively enduring over time. Find out how lessons from the past can help inform present and prospective portfolio positioning.
First Quadrant’s Jeppe F. Ladekarl, portfolio manager of John Hancock Absolute Return Currency Fund
Currency transactions are affected by fluctuations in exchange rates. The fund’s losses could exceed the amount invested in its currency instruments. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if an issuer is unable or unwilling to make principal or interest payments. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value, if at all—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. The use of hedging and derivatives could produce disproportionate gains or losses and may increase costs. Please see the fund’s prospectus for additional risks.