Epstein Secrets

ndition of the company or its industry and make the company more sensitive to declines in revenues and to increases in expenses. Currency risks and Non-United States investments. Investments may be denominated in non-U.S. currencies. Accordingly, changes in currency exchange rates, costs of conversion and exchang

multiple expansion, given low price-to-book ratios and valuations at the lower end of historical ranges Cyclicals have never been this cheap versus Defensives 190% - 170% - 150% 130% 110% • 90% 70% • 50% M ill N cn r— M in t Cl en IA Ni CTr en IA Ni 01 r N. N. N. N. IS 00 00 00 00 en en e

on The J P Morgan View 09 November 2012 Global Economic Outlook Summary J.P.Morgan Real GDP %over a year ago 2011 2012 2071 1012 2012 The Americas United States 1.8 22 1.7 2.0 1.3 Canada 2.6 2.2 2.1 1.8 1.9 Latin America 42 2.9 3.9 2.8 2.4 Argentina 8.9 2.7 3.6 24 -32 &a

between March and August and thus provide a better entry point. Position indicators suggest that investors are underweight Cyclicals and overweight Defensives which is turn means that Defensive sectors are more vulnerable to position unwinding. • We introduced an underweight in US equities in mid October

d 11 comparable episodes since 1980. Equity market returns subsequent to the peak rate of change in bunds were moderately positive — a median Bankof America Merrill Lynch European Equity Strategy |O1 December 2016 17 HOUSE_OVERSIGHT_014476 --- PAGE BREAK --- +1.0% after 3 months and +3.7% after 6 month

approaching 2010/14 lows on PE-relative. Staples have also de- rated severely — in fact Food & Beverage relative PE fell somewhat more than the other Defensives. However, current levels are still somewhat higher versus the historical range (since 1999) than for Healthcare or Utilities. That being said, the PE