A BNY MELLON COMPANY

Insights & Ideas

Investing Ideas

Get the latest fund commentaries, portfolio manager updates, helpful handouts and more.

Equity Funds

Bond Funds

The Sum of All Fears Commentary

The Sum of All Fears Commentary

January 22, 2016

For investors, 2016 has thus far been anything but a happy new year. January is on pace to rank as the worst month for equity markets since February 2009. This month's sell-off is the result of a variety of factors, none of which alone may seem sufficient to justify a market correction. Added together, though, they raise concerns about the strength of the global economy and the likelihood of recession.

Topical/General

Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. Download a prospectus, or summary prospectus, if available, that contains this and other information about the fund, and read it carefully before investing.

Equity funds are subject generally to market, market sector, market liquidity, issuer, and investment style risks, among other factors, to varying degrees, all of which are more fully described in the fund's prospectus.

Bond funds are subject generally to interest rate, credit, liquidity (except government-only funds), prepayment and extension risks (for mortgage funds), and market risks, to varying degrees, all of which are more fully described in the fund's prospectus.

High yield bonds involve increased credit and liquidity risk compared with investment grade bonds and are considered speculative in terms of the issuer's ability to pay interest and repay principal on a timely basis.

The stock and bond markets of the China and Latin American regions, like those of other developing economies, have experienced significant volatility. The fund’s performance will be influenced by political, social and economic factors affecting investments in companies in such regions. These special risks include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, a lack of comprehensive company information, differing auditing and legal standards, political instability and less diverse and mature economic structures. The fund’s concentration in securities of companies in the China and Latin American and other emerging market regions could cause the fund’s performance to be more volatile than that of a more geographically diversified fund.