It is important to note that alternative investment products, such as real estate investments, notes and debentures, hedge funds, and private equity, are considered highly speculative and carry a significant level of risk. These investments often involve leveraging and other speculative practices that can increase the potential for investment losses. They may also have limited liquidity and may not provide regular pricing or valuation information to investors.
Furthermore, alternative investments may have complex tax structures and may experience delays in distributing important tax information. They are not subject to the same regulatory requirements as mutual funds and often come with high fees that can offset potential trading profits. Additionally, the underlying investments in alternative products may lack transparency and be known only to the investment manager.
The performance of alternative investments can be volatile, and investors could potentially lose all or a substantial portion of their investment. It is important to consider that alternative investment fund and account managers typically have full trading authority, which may result in a lack of diversification and increased risk. It is also worth noting that there may not be a secondary market for an investor’s interest in alternative investments, and restrictions may apply to transferring these interests.
Please consult with your Cornerstone representative to understand the specific risks associated with the offering you are interested in. It is crucial to carefully evaluate these risks before making any investment decisions. Securities offered through WEALTHFORGE Securities LLC are not FDIC-insured and may lose value.