Epstein Secrets

han EM. • Are depressed valuations a good reason to buy EM equities? We do not think so, either. It is true that the PE gap between MSCI World and MSCI EM indices has been widening for two years now to well above historical averages, 3.8 pts currently vs. a historical average of 2.7. This 3.8pt gap is

given improving US and European demand coupled with significant supply uncertainty in the Middle East (see Commodity Markets Outlook and Strategy, Colin Fenton, Aug 8). Additionally, tight supplies in energy have caused spot prices to be persistently higher than forwards, something we expect to continue. Th

an EM. * Are depressed valuations a good reason =o buy EM equities? We do not think so, either. It is true that the PE gap between=MSCI World and MSCI EM indices has been widening for two years now to well=above historical averages, 3.8 pts currently vs. a historical average of 2=7. This 3.8pt gap is

e given improving US and Europ=an demand coupled with significant supply uncertainty in the Middle East (=ee Commodity Markets Outlook and Strategy, Colin Fenton, Aug 8). Additi=nally, tight supplies in energy have caused spot prices to be persistently=higher than forwards, something we expect to continue. Th

D JPY EUR GBP CHF CAD AUD TWI Source: J.P. Morgan More details in ... FX Markets Weekly, John Normand et al. Commodity Markets Outlook & Strategy, Colin Fenton et al. Oil Markets Monthly, Colin Fenton et al. Daily Metals Note, Colin Fenton et al. Agriculture Weekly, Dietz et al. HOUSE_OVERSIGHT_026575 ---

3% 12.2% Shanghai SE 2117 42% Utilities 47% 8.2% -20.4% 5.2% *Levels/returns as of Nov 08, 2012 Overall 15.6% 13.2% 4.4% 12.2% Local currency except MSCI EM $ Source: J.P. Morgan HOUSE_OVERSIGHT_026576 --- PAGE BREAK --- Global Asset Allocation The J.P. Morgan View 09 November 2012 Jan Loeys (1-212)

such as Mexico and Malaysia. See "Consensus Asset Allocation", Adrian Mowat and team, Mar 26th. Open overweights in Mexican and Malaysia equities vs MSCI EM. • For long-term investors we just released our quarterly publication "Trade opportunities for long term investors" Mar 27. We monetize risk premia i

0% - USD JPY EUR GBP CHF CAD AUD Source: J.P. Morgan More details in ... FX Markets Weekly, John Normand et al. Commodity Markets Outlook & Strategy, Colin Fenton et al. Oil Markets Monthly, Colin Fenton et al. Daily Metals Note, Colin Fenton et al. Agriculture Weekly, Dietz et al. HOUSE_OVERSIGHT_030851 --- P