EFTA01148407.pdf

From: US GIO To: Undisclosed recipients:; Subject: JPMorgan View 01.20.2012 Date: Fri, 20 Jan 2012 21:45:53 40000 Attachments: JPM_View_01.20.2012-pdtsip Inline-Images: image003.png J.P.Morgan Gebsi Asset Allocation J P l”r9an Croce Bank NA, J P hewn sonene: 510 ain20. 2012 The J.P. Morgan View Momentum is broadening Jan Loeys•0 • Asset ..thotallon — Sny long equities. and add EM FX longs • Economies — Banal signs that the soft patch m untmay may end an John Normand • FIBS Income — Mo't to modest Wheal 0.trambi m Euto arta geoptery. • Equates— 11w fact that the worst pertaining sector. of 2011.1e Financials and Cyehcals ace otaperfomung YTD. c comment with the January effect Nikolooc Paniairtmalou • Credit — Upgrade HG to neutral and ownwight European Senior Unseated bank debt Maintain a loots in US HY • Foreign exchange — Reduce detemne expaeures an • Commodities —tot take profit on ow Sprms 2012 US natural gas pas Matthew Lehmann • TM rally in nsk assets continues. instable as non-acceleratuis fashion Most importantly. die rally is broadening. pmWg along num' stragglers. such as EM cur:tonnes and credo The dollar (D2Cei and bonds had at lust ignored the rally in equities. but art now strung. by owning clown Leo Evans • We are comfoitable remaining long risk antis as the rally is still young and reluctant. norstors lute not had nurh tune yet to bald ownwaglo pcumons. and there is decent fundametual :rapport for the rally vIn returns through Mt is was we in tow mar • Hon can rt,k tally with the global economy supposed to be weak. US earn- ings deappanums. (loner teal estate activity and purl coming down BIM Br dramatically. E tuoran leaden =along no pogren town!: a fiscal union. and Goa Greek restrucnumg re:naming an nen' Mk^ othennte pat. Met the market SIMM getting ahead of lovably? Tie answet should be Yes. to some degree Farb- IMO Adroit menial !union for the 5% gain in equates YTD as dance me ground But market do not wit fur full cadence and ream al me first sign that Ite risk bias iASCIEuvas around these fundazarinal:. c. :Jahns. net daily marginally FX MOTO • We are not razing global growth foments If anything. or 2012 ward UStlteTela grown fcmcatt came down 0 I% to 2 6% tins week.= %kr expel payback Toped faun the stamp than exsected Clyne Q4 GDP zepart Ikmeter. a matt of forwani-looking indicates: — esircally MI:. US claims — air hinting that Bt SCoy the bonran in growth that ne re Forming fix HI. and tar following re- Eli Lauf Bras- board, will acme earlier than we currently forecast, and may already be on as ugHOGS. In nOrtion. even more important for oak markets, is that the downside risk EIBIG emanating from the EMU debt crisis. Chinese &Mutt and US fiscal gridlock uS hat Imo are edging Mace Fatally. rank rallies can become self fulfilling as dry lamer wraith. sentiment. spending. Imuarbly. funding. and collateral values Enohad wane usual • In China. both QS GDP grtmth ruler Ian PSG came in tenet:WM- tan= OsamuMods- The [clads, and especially aging unentonts, do not conware us and xr rims 4 6 Maintain that growth is Corning Wall even ns we remain squanq in rte soft fa. 19•336Dinbata leMILS landing camp Global unrstors. Mao have bra staying out of FM rats far 66.36 ^moonISM63.11•014•••••••04,0 fear of a hard Landing in China. are now beans forced to redact thew rat 30 Patftti4•144IVI QomMil ea& overwights. allowing EM equities to teat DM this month by over l% MID The Certifying anal), is indscated by an '4 See page 7 for analyst certification and important legal and regulatory doclotaues This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of infonttation, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at littp://mvw.jpmorgan.com/pagesidisclosurestemail. EFTA01148407