line PE multiples do not screen as particularly cheap for European equities but are also not excessively expensive. In fact the current forward PE on MSCI Europe at 14.1x is right in-line with the average since 1987. The most recent high in PE multiples was over 16.5x at the April 2015 market highs. However, m

A% Industrials 12.6% 15.7% 1.2% 10.5% FTSE 100 5770 8.6% Discretionary 21.0% 23.9% 45% 10.8% MSCI Eurozone* 143 15.8% Staples 11.4% 13.1% 13.8% 19.5% MSCI Europe* 1104 13.2% Healthcare 18.4% 15.5% 15.0% 30.9% MSCI EM $* oo5 12.2% Financials 25.6% 24.2% 23.0% 16.8% Brazil Bovespa 58383 2.6% Information Tech. 15

vans (44-20) 7742-2537 M. Morgan Securities plc 2012 returns %, equities are in tighter color. Toplx EMBIG MSCI EM* EM S Corp. MSCI AC Work! MSCI Europe US Hip Yield SIP500 Europe Faced Inc US Hip Grade EM Local Bonds EM FX Gold Global Gov Bonds— U S Fixed Income US cash GSCI TR ■ .6 0 5 1

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, t

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005. the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany. Greece. Ireland, Italy, t

I Diversified Commodities Index' 2.0%; MoneyNet Money Funds (All) Tax-Free Average: 2.0%. Growth. Equities. S&P 500. 320%, Russell 2000 Index; 10%. MSCI Europe index 15.5%; MSCI Japan Index' 4.5%. MSCI Pacific Free ex-Japan €nder 3.0%; MSCI Emerging Markets Index: 3.5%. Fixed Income: Barclays Municipal Shor

quities S&P 500 2178.2 -0 3% 0.4% 4.1% 8.1% 6.5% 7.8% 11.9% 15.3% MSCI World (USD) 420.2 -0.1% 1.1% 55% 7.2% 2.7% 2.2% 6.7% 9.4% MSCI Europe ex UK (USD) 1713.7 -0.2% 1.6% 6.5% 0.9% -5.8% -2.1% 1.9% 6.4% MSCI UK (USD) 1085.1 -04% 0.7% 3.5% 0.4% -9.1% -7.4% -08% 4,0% MSCI

S8P 500 PIE (LTM) 18.7 -003 0.04 0.72 1.30 0.89 1.77 3.35 5.79 MSCI World P/E (LTM) 17.5 0.05 0.17 0.92 1.03 0.81 1.82 2.86 5.45 MSCI Europe ex UK P/E (LTM) 16.2 0.19 0.24 1.26 0.15 -0.93 0.64 1.81 6.07 MSCI UK PIE (LTM) 9.5 0.03 0.01 0.03 -0.13 -0.24 -0.31 1.34 273 MS

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005. the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany. Greece. Ireland, Italy, t

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, t

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005. the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany. Greece. Ireland, Italy, t

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005. the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany. Greece. Ireland, Italy, t

is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, t

s a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

s a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe. As of May 2005, the MSCI Europe Index consisted of the following 16 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

nds US Bonds Global Gov Bonds" JPM Global HY EM Local Bonds" Brent EM $ Corp iBoxx Euro Corps S&P500 US Cash FTSE 100 -4% • EM FX -4% • MSCI Europe -11% Hang Seng -15% Topix -15% rrrrr - MSCI EM $ -16% rrrrr - Brazil Bovespa -17% Corn -20% -40% -20% 0% 20% 40% Source: J.P. Morgan,

low. Benchmarks for each region ae as idiom: North America - S&P 500: Latin America - relaent MSCI country index a MSCI Latin America hdex: Etrope - MSCI Europe: Japan - TCPIX Asia • raiment MSCI country index a MSCI submcjonal index a MSCI AC Asia Peak ex Japan Mex. Stock Price, Price Target and Rating Hist