1. MARKET Weekly Market Recap
INSIGHTS December 12, 2011
Friday Prior Year Year Friday Prior Year Year
Close Week End Ago Close Week End Ago
Headlines Index Levels 12/9/11 12/2/11 12/31/10 12/9/10 Consumer Rates 12/9/11 12/2/11 12/31/10 12/9/10
• Ratings agencies warned of downgrades in Europe. Dow Jones 30 12,184 12,019 11,578 11,370 6 Month CD 0.64 0.63 0.41 0.41
Economic News S&P 500 1,255 1,244 1,258 1,233 30 Year Mortgage 4.18 4.21 4.82 4.66
• Jobless claims fell more than expected to 381,000. Nasdaq 2,647 2,627 2,653 2,617 Prime Rate 3.25 3.25 3.25 3.25
• ISM Non-Mfg. index ticked down to 52.0. Russell 2000 745 735 784 768
Commodities
• Oct. trade balance moved down to $-43.5bn. Bond Rates Gold 1709.00 1747.00 1405.50 1391.25
• Next week: retail sales, inventories, IP, CPI & FOMC Fed Funds Target 0.25 0.25 0.25 0.25 Crude Oil 99.41 100.96 89.84 88.37
meeting. 2 Year Treasury 0.23 0.25 0.60 0.63 Gasoline 3.29 3.31 3.05 2.96
Thought of the Week 10 Year Treasury 2.05 2.04 3.30 3.23
10 Year Municipal 2.60 2.81 3.75 3.55 Currency
A recent intensification of stress in the global financial $ per € 1.34 1.34 1.34 1.32
system, most evident in the skyrocketing cost and High Yield 8.58 8.70 7.51 7.67
$ per £ 1.56 1.56 1.57 1.57
deteriorated ability of European banks and sovereigns
¥ per $ 77.62 77.95 81.11 83.95
to borrow in private markets, has resulted in a call to 1 week YTD
action for policymakers the world over. As we show in Market Returns Local USD Local USD Wtd Avg
this week’s chart, global central banks have begun to S&P 500 0.91 0.91 1.79 1.79 Index P/E P/E Dividend Mkt Cap
respond to the tightening credit conditions, moderating MSCI - EAFE -0.68 -0.88 -11.63 -10.83 Characteristics Forward Trailing Yield (billions)
growth and easing inflation pressures by lowering key United Kingdom -0.39 -0.43 -2.59 -2.82 S&P 500 12.03 14.76 2.20 93.10
policy interest rates in both the developed and Europe ex-UK -0.13 -0.57 -12.60 -12.85 Russell 1000 Value 10.95 12.98 2.63 71.44
emerging world. Central banks have also taken a Japan -1.06 -0.64 -17.53 -13.83 Russell 1000 Growth 13.73 15.99 1.60 94.19
number of unconventional steps to ease policy and Asia ex-Japan -2.46 -3.16 -12.58 -14.24 Russell 2000 17.39 22.85 1.46 1.24
given the prospect of lower inflation around the world, a
cycle of easier monetary policy appears likely. While EM S&P 500 Sector Returns Style Returns Chart of the Week
central banks have more room for conventional policy V B G Global Central Banks Appear to be Entering an Easing Cycle
rate cuts, DM central banks may use less common policy Net number of changes in central bank key policy interest rate
1.7
2 18
tools given already low interest rates, increasing the L 1.1 0.9 0.5
1.4
Tighter Policy
0.9
0.9
0.9
possibility of unintended consequences.
0.8
0.8
0.7
EM Central Banks (raising interest rates)
1
0.5
1 week
1 week
M 0.5 0.2 -0.2 12
0.1
0.0
Question of the week: 0
Financials
Technology
Industrials
Health Care
Consumer
Staples
Utilities
Consumer
Discr.
Telecom
Energy
Materials
S&P 500
Low levels of consumer confidence have been a staple S 1.4 1.4 1.5 6
of the current expansion but given a lower
unemployment rate and the power of holiday cheer,
0
where does confidence stand today? V B G
15.5
20
11.2
Industrials
Financials
Prior week's question:
Materials
9.2
L -0.8 1.8 3.3
6.4
DM Central Banks
5.2
-6
5.1
10
Last Wednesday, the Dow Jones Industrial Average rose
2.4
1.8
by +4.2%; when was the last time the index had a daily
YTD
0
YTD
M -2.4 -1.5 -0.4
move of at least this magnitude?
Utilities
Consumer
Staples
Health Care
Consumer
Discr.
Technology
Energy
Telecom
S&P 500
-12
-1.1
-10 Looser Policy
Answer to prior week's question:
-9.1
S -6.1 -3.8 -1.4 (lowering interest rates)
The Dow’s +4.2% gain was the biggest single day move -20
-16.8
-18
'05 '06 '07 '08 '09 '10 '11
in percentage terms since March 2009.
Please see important disclosure on next page. Note: All returns represent total return including dividends.

2. MARKET Weekly Market Recap | December 12, 2011
INSIGHTS
Chart of the Week: Source: MacData, Global central banks, J.P. Morgan Asset Management. reinvestment of dividends. The Index used from L to R, top to bottom are: S&P 500 Index (Index represents
Thought of the Week: Source: Global central banks, J.P. Morgan Asset Management. the 500 Large Cap portion of the stock market, and is comprised of 500 stocks as selected by the S&P
Index Committee), Russell 1000 Value Index (Measures the performance of those Russell 1000 companies
Question of the Week: Source: Rasmussen Reports, J.P. Morgan Asset Management. with lower price-to-book ratios and lower forecasted growth values), Russell 1000 Growth Index (Measures
Market Returns: All data represents total return including the reinvestment of dividends for stated period. the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted
Index: MSCI – EAFE; provided by: MSCI – gross official pricing. Index: UK; provided by: MSCI – gross official growth values), Russell Mid Cap Value Index (Measures the performance of those Russell Mid Cap
pricing. Index: Europe ex-UK; provided by: MSCI – gross official pricing. Index: Japan; provided by: MSCI – companies with lower price-to-book ratios and lower forecasted growth values), Russell Mid Cap Index
gross official pricing. Index: Asia ex-Japan; provided by: MSCI – gross official pricing. Index: S&P 500 Index; (The Russell Midcap Index includes the smallest 800 securities in the Russell 1000), Russell Mid Cap
provided by: IDC. Growth Index (Measures the performance of those Russell Mid Cap companies with higher price-to-book
(MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of ratios and higher forecasted growth values), Russell 2000 Value Index (Measures the performance of
the developed stock markets of Europe, Australia, and the Far East). those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values),
Russell 2000 Index (The Russell 2000 includes the smallest 2000 securities in the Russell 3000), Russell
Dow Jones-UBS Commodity Index (DJ-UBSCI) is a broadly diversified index composed of futures contracts
2000 Growth Index (Measures the performance of those Russell 2000 companies with higher price-to-
on physical commodities. The index is designed to minimize concentration in any one commodity or sector.
book ratios and higher forecasted growth values).
It includes 19 commodity futures in five groups.
Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 for a fund prospectus. You can
Bond Rates: Fed Funds Target, EcoWin; 2 Year Treasury, IDC; 10 Year Treasury, IDC; 10 Year Muni, Barclays
also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment
Capital; High Yield, Barclays Capital High-yield Index.
objectives and risks as well as charges and expenses of the mutual fund before investing. The
Consumer Rates: 6 Month CD, Federal Reserve; 30 Year Mortgage, Mortgage Bankers Association (MBA); prospectus contains this and other information about the mutual fund. Read the prospectus
Prime Rate: Federal Reserve. carefully before investing.
Commodities: Gold, EcoWin; Crude Oil (WTI), EcoWin; Gasoline, EcoWin. Past performance does not guarantee future results.
Currency: Dollar per Pound, IDC; Dollar per Euro, IDC; Yen per Dollar, IDC. Diversification does not guarantee investment returns and does not eliminate the risk of loss.
Index Price Levels: Reflects closing price level for each index as of stated date. Dow Jones Industrial 30 Opinions and estimates offered constitute our judgment and are subject to change without notice, as are
(The Dow Jones is a price-weighted index composing of 30 widely-traded blue chip stocks.): IDC, S&P 500 statements of financial market trends, which are based on current market conditions. We believe the
Index (The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market, this information provided here is reliable, but do not warrant its accuracy or completeness. This material is not
world-renowned index includes a representative sample of 500 leading companies in leading industries of intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and
the U.S. economy. Although the S&P 500 focuses on the large-cap segment of the market, with strategies described may not be suitable for all investors. This material has been prepared for
approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market.): IDC, NASDAQ informational purposes only, and is not intended to provide, and should not be relied on for, accounting,
Composite Index (The NASDAQ Index is a market-value weighted index of all common stocks listed on the legal or tax advice. References to future returns are not promises or even estimates of actual returns a
NASDAQ stock exchange.): IDC, Russell 2000 Index: IDC. Indexes are not available for direct investment. client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not
S&P Index Characteristics: Trailing P/E price is provided by Factset Pricing database while trailing earnings to be relied upon as advice or interpreted as a recommendation.
is provided by Compustat. Dividend Yield provided by FactSet Pricing database. Fwd. P/E is a bottom-up The price of equity securities may rise, or fall because of changes in the broad market or changes in a
weighted Harmonic average using First Call Mean estimates for the "Next 12 Months" (NTM) period. company's financial condition, sometimes rapidly or unpredictably. International investing involves a
Marketcap is a bottom-up weighted average based on share information from Compustat and Price greater degree of risk and increased volatility. Investments in commodities may have greater volatility
information from FactSet's Pricing database as provided by Standard & Poor's. than investments in traditional securities, particularly if the instruments involve leverage.
Russell 1000 Value Index, Russell 1000 Growth Index, and Russell 2000 Index Characteristics: Trailing P/E J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan
is provided directly by Russell. Fwd. P/E is a bottom-up weighted harmonic average using First Call Mean Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc.,
estimates for the "Next 12 Months" (NTM) period. Marketcap is a bottom-up weighted average based on Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management,
share information from Compustat and Price information from FactSet's Pricing database as provided by Inc.
Russell.
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Sector Returns: Sectors are based on the GICS Classification model. Return data are calculated by FactSet
© JPMorgan Chase & Co., December 2011.
using constituents and weights as provided by Standard & Poor’s. Returns are cumulative total return for
stated period, including reinvestment of dividends. Unless otherwise stated, all data is as of December 9, 2011 or as of most recently available.
Style Returns: Style box returns based on Russell Indexes with the exception of the Large-Cap Blend box,
which reflects the S&P 500 Index. All values are cumulative total return for stated period including the
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