+What’s next for theeconomy?Ignore theDOW hittingall time highs
+Source: JPMorgan Asset ManagementS&P 500 Total LeverageThis is not a goodtrend
+Source: JPMorgan Asset ManagementCorporate Financing Gap1) Companies don’thave to borrow2) Banks don’twant to lend either
+Source: JPMorgan Asset ManagementHouse InventoriesHome inventoriesstill heading inthe wrongdirection
+Source: JPMorgan Asset ManagementAfter Tax Corporate Profits• Corporate profitsstill at all time highsand growing• Close ...
+Source: JPMorgan Asset ManagementS&P Earnings Per ShareHistoricallycompanies EPShas drivenS&P and themarkets
+Source: JPMorgan Asset ManagementResidential Mortgage DelinquencyRatesWhile commercialand consumerloans have somewhatstab...
+Source: JPMorgan Asset ManagementLight Vehicle SalesBack to average
+Source: JPMorgan Asset ManagementHousing StartsStill below average
+Source: JPMorgan Asset ManagementPrivate InventoriesNeedsimprovement
+Source: JPMorgan Asset ManagementCapital Goods OrdersNeedsimprovement
+Source: JPMorgan Asset ManagementDeploying Corporate CashToo much corporatecash sitting around
+Source: JPMorgan Asset ManagementCorporate GrowthGood capitalexpendituresactivity butneed moreinvestment ininfrastructure...
+Source: JPMorgan Asset ManagementEmploymentNot enoughjob growth1) Many part timejobs2) Lower levelsalaries
+Source: JPMorgan Asset ManagementEuropean UnemploymentNot a good longterm picture
+Source: JPMorgan Asset ManagementUS GDP and Economic GrowthConsumptioncan’t keepdriving USGDPChina example:investmentand ...
+Source: JPMorgan Asset ManagementMutual Fund Flows• Too much moneyhas flowed intofixed income• Seems like biginstitutions...
+Source: JPMorgan Asset ManagementGrowing your business in anaverage economy Having the right business intelligence Find...
+Source: JPMorgan Asset Management
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Ignore the DOW hitting all time highs

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Its pretty worrisome if the FED removes itself out of the equation. Several factors in the economy still show a worrying trend. 1) Take a look at the flow of money (in the last 3 years) into Fixed income vehicles (billions of $'s). 2) Employment data is still not strong as companies went through major cost cutting, laid off a large number of employees to reduce their fixed costs. 3) Investment in equipment, infrastructure and other items is doing ok but its not enough. 4) Residential mortgages and most homes are still under water. 5) Large companies have plenty of cash and see no need to borrow money. 6) Small business can not borrow money since banks are not lending. 7) Europe looks terrible. We need job creation as a priority.

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Ignore the DOW hitting all time highs

  1. 1. +What’s next for theeconomy?Ignore theDOW hittingall time highs
  2. 2. +Source: JPMorgan Asset ManagementS&P 500 Total LeverageThis is not a goodtrend
  3. 3. +Source: JPMorgan Asset ManagementCorporate Financing Gap1) Companies don’thave to borrow2) Banks don’twant to lend either
  4. 4. +Source: JPMorgan Asset ManagementHouse InventoriesHome inventoriesstill heading inthe wrongdirection
  5. 5. +Source: JPMorgan Asset ManagementAfter Tax Corporate Profits• Corporate profitsstill at all time highsand growing• Close to 2008Levels• Aggressive costcutting• Massive layoffs
  6. 6. +Source: JPMorgan Asset ManagementS&P Earnings Per ShareHistoricallycompanies EPShas drivenS&P and themarkets
  7. 7. +Source: JPMorgan Asset ManagementResidential Mortgage DelinquencyRatesWhile commercialand consumerloans have somewhatstabilized, residentialmortgages still looka total mess
  8. 8. +Source: JPMorgan Asset ManagementLight Vehicle SalesBack to average
  9. 9. +Source: JPMorgan Asset ManagementHousing StartsStill below average
  10. 10. +Source: JPMorgan Asset ManagementPrivate InventoriesNeedsimprovement
  11. 11. +Source: JPMorgan Asset ManagementCapital Goods OrdersNeedsimprovement
  12. 12. +Source: JPMorgan Asset ManagementDeploying Corporate CashToo much corporatecash sitting around
  13. 13. +Source: JPMorgan Asset ManagementCorporate GrowthGood capitalexpendituresactivity butneed moreinvestment ininfrastructure,and hiring moreemployees
  14. 14. +Source: JPMorgan Asset ManagementEmploymentNot enoughjob growth1) Many part timejobs2) Lower levelsalaries
  15. 15. +Source: JPMorgan Asset ManagementEuropean UnemploymentNot a good longterm picture
  16. 16. +Source: JPMorgan Asset ManagementUS GDP and Economic GrowthConsumptioncan’t keepdriving USGDPChina example:investmentand consumption%’s are oppositeof US
  17. 17. +Source: JPMorgan Asset ManagementMutual Fund Flows• Too much moneyhas flowed intofixed income• Seems like biginstitutions are theonly players inequity marketsand not theaverageAmerican
  18. 18. +Source: JPMorgan Asset ManagementGrowing your business in anaverage economy Having the right business intelligence Finding the right market niches and segments Identifying and securing strategic partnerships (x3-5 revenuegrowth) Getting more out of existing clients (loyalty marketing)
  19. 19. +Source: JPMorgan Asset Management

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