The document discusses the outlook for 2023 following a year of high inflation and aggressive interest rate hikes by central banks globally. It finds that:
1) Central banks around the world raised interest rates significantly in 2022 to curb inflation, resulting in the worst year on record for bonds.
2) The rate hikes are having their intended impact of slowing economic growth as borrowing costs rise for households and businesses.
3) The document expects that the rate hiking cycles will end in 2023, but the damage to growth has already been done, and weakness from housing, capital markets, and technology will spread through 2023, likely causing recessions in the US and Europe.
Brazil Digital Report - 1st Edition By McKinsey & Company and Brazil at Silic...Ana Lucia Amaral
Â
An amazing initiative by McKinsey and Brazil at Silicon Valley: A report that presents an overview of Brazilâs economy, including its innovation, digital and entrepreneurial landscape. Source: https://www.brazilatsiliconvalley.com/brazil-digital-report
#BSV19
Brazil Digital Report - 1st Edition
A first-edition dossier on the Brazilian digital economy
April 8th, 2019
The Report
A comprehensive 191-page report on the Brazilian digital economy, including macroeconomic indicators, Internet trends, investment facts, and data on the overall entrepreneurship and innovation landscape.
The Audience
This report is intended for all those who can play a part in driving the innovation agenda in the country â entrepreneurs, investors, public and private institutions, global business leaders, as well as digital savvy people who are curious about Brazil.
The Methodology
This is a curated compilation of public information and selected proprietary McKinsey data. We aspire to revise it annually with fresh data in order to tell the ongoing story of Brazilâs digital and innovation evolution.
Acknowledgments
McKinsey thanks the support it has received from Brazil at Silicon Valley, a student-led movement that started at Stanford University and whose mission is to improve Brazilâs competitiveness and global relevance through technology and innovation.
On June 21st, PwCâs Health Research Institute (HRI) released its annual Medical Cost Trend: Behind the Numbers 2017 report. PwCâs HRI anticipates a 6.5% growth rate for 2017âthe same as was projected for 2016. The report identifies the key inflators and deflators as well as historical context to better understand the medical cost trend for 2017. Increases in the trend due to utilization of convenient care access points and an uptick in behavioral healthcare benefits for employees are being offset by more aggressive strategies by pharmacy benefit
The FDA and industry: A recipe for collaborating in the New Health EconomyPwC
Â
Pharmaceutical and life science companies and their chief regulator â the FDA â must find new ways to collaborate to meet 21st century demands.
Web Page: http://www.pwc.com/us/en/health-industries/health-research-institute/hri-pharma-life-sciences-fda.jhtml
The Insurer/Distributor Interface: Where InsurTech is Going NextAdrian Jones
Â
Adrian Jones's presentation at InsureTech Connect 2022 on the interface between insurance carriers and distributors. How will technology and private equity impact how insurers and distributors evolve together?
Brazil Digital Report - 1st Edition By McKinsey & Company and Brazil at Silic...Ana Lucia Amaral
Â
An amazing initiative by McKinsey and Brazil at Silicon Valley: A report that presents an overview of Brazilâs economy, including its innovation, digital and entrepreneurial landscape. Source: https://www.brazilatsiliconvalley.com/brazil-digital-report
#BSV19
Brazil Digital Report - 1st Edition
A first-edition dossier on the Brazilian digital economy
April 8th, 2019
The Report
A comprehensive 191-page report on the Brazilian digital economy, including macroeconomic indicators, Internet trends, investment facts, and data on the overall entrepreneurship and innovation landscape.
The Audience
This report is intended for all those who can play a part in driving the innovation agenda in the country â entrepreneurs, investors, public and private institutions, global business leaders, as well as digital savvy people who are curious about Brazil.
The Methodology
This is a curated compilation of public information and selected proprietary McKinsey data. We aspire to revise it annually with fresh data in order to tell the ongoing story of Brazilâs digital and innovation evolution.
Acknowledgments
McKinsey thanks the support it has received from Brazil at Silicon Valley, a student-led movement that started at Stanford University and whose mission is to improve Brazilâs competitiveness and global relevance through technology and innovation.
On June 21st, PwCâs Health Research Institute (HRI) released its annual Medical Cost Trend: Behind the Numbers 2017 report. PwCâs HRI anticipates a 6.5% growth rate for 2017âthe same as was projected for 2016. The report identifies the key inflators and deflators as well as historical context to better understand the medical cost trend for 2017. Increases in the trend due to utilization of convenient care access points and an uptick in behavioral healthcare benefits for employees are being offset by more aggressive strategies by pharmacy benefit
The FDA and industry: A recipe for collaborating in the New Health EconomyPwC
Â
Pharmaceutical and life science companies and their chief regulator â the FDA â must find new ways to collaborate to meet 21st century demands.
Web Page: http://www.pwc.com/us/en/health-industries/health-research-institute/hri-pharma-life-sciences-fda.jhtml
The Insurer/Distributor Interface: Where InsurTech is Going NextAdrian Jones
Â
Adrian Jones's presentation at InsureTech Connect 2022 on the interface between insurance carriers and distributors. How will technology and private equity impact how insurers and distributors evolve together?
Summary: Even in a time of high biopharma valuations, adopting an activist mentality adds rigor to capital allocation and strategic decision-making, improving not just returns to shareholders but long-term value creation. Therefore, biopharma management teams and boards of directors should proactively assess the âfitnessâ of their capital allocation strategies and their alignment with operational performance goals by taking an outsiderâs view of the business even when times are good â and before a material stumble provides a compelling reason for an outsider to act. For more on this topic, go to http://www.ey.com/GL/en/Industries/Life-Sciences/EY-vital-signs-how-fit-is-your-capital-allocation-strategy.
One in four customers is planning to either use branches less or stop visiting branches altogether after the COVID-19 crisis, according to new BCG retail banking consumer âpulseâ survey.
Bcg cii report - one consumer, many interactions - december 2018Social Samosa
Â
The report highlights the massive, unparalleled change the media and entertainment industry is going through, with the exponential growth of media and type of content available creating a trillion customer touch points.
KYC automation using artificial intelligence (AI)EY
Â
Knowing Your Customer (KYC) is the process of understanding and validating the authenticity of the businessâ potential clients and risk that it might impose onto the relationship. KYC solutions enable access to detailed information ensuring the credibility of clients and expediting the client onboarding. KYC solution also automate previously manual processes and reduce repetition, saving time and money for the firm.
The KYC solution streamlines the KYC process by automating the processing of customer data, sorting the data by type and storing it in a data lake. The solution reduces clutter and maintains lean operations by centralizing KYC data for any branch to query from. The solution increases operational efficiency and reduces overhead manpower cost incurred in processing consumer data manually. The time to process a clientâs information is reduced from 18 minutes to 1 minute by leveraging on automation.
Find out more at www.ey.com/sg/fintechhub.
For enquiries, contact us via email at fintech@sg.ey.com.
Global Capital Confidence Barometer | How can you reshape your future before ...EY
Â
The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their Capital Agendas â EY framework for strategically managing capital. It is a regular survey of senior executives from large companies around the world, conducted by Thought Leadership Consulting, a Euromoney Institutional Investor company. Our panel comprises select global EY clients and contacts and regular Thought Leadership Consulting contributors.
Cracking the Code on Consumer Fraud | Accentureaccenture
Â
"Accenture research highlights how public safety agencies need a new approach to tackle consumer fraud â more intelligence-led,
proactive and collaborative."
China Exit or Co-Investment Opportunities for German PE InvestorsL.E.K. Consulting
Â
L.E.K.'s Karin von Kienlin recently presented at BVK on a study conducted by L.E.K. Munich and Shanghai. They wished to:
- Understand developments in Chinese equity investments in both the domestic China / pan-Asian market and cross-border investments between China and Germany / Europe
- Identify trends in likely future investment behavior and its drivers
- Defining success factors both for Chinese and German investors / corporates as to how to benefit from the potential opportunities of cross-border investments and cooperation
Learn more in the presentation here.
IBOR transition: Opportunities and challenges for the asset management industryEY
Â
EY Wealth & Asset Management explores the practical implications and the way forward for the transition to the new risk-free rates. This presentation aims to help asset managers and asset owners explore IBOR transition strategies that are compliant and future-focused.
L.E.K. Consulting recently surveyed more than 200 U.S. brand managers and packaging stakeholders at consumer packaged goods companies to understand their packaging needs and views on trends driving demand.
The survey focused on topics that include:
- Brand trends and their effect on packaging demand
- Shifts within packaging (e.g., new materials, packaging innovations)
- Perspectives on packaging demand (including forecast spend on packaging for their brands)
This Executive Insights analyzes key findings from this proprietary research
MGI: From poverty to empowerment: Indiaâs imperative for jobs, growth, and ef...McKinsey & Company
Â
Some 680 million people, or 56% of India, live below MGIâs Empowerment Line and lack acceptable minimum standards of living; the Empowerment Gap is 4% of GDP in value terms (about 7 times the official poverty gap)
From 2005 to 2012, 75% of the improvement in living standards was due to rising incomes, the rest due to government spending; to reduce the gap faster, India needs more productive jobs and higher effectiveness of government spending (e.g., 85 million people below the official poverty line could have been lifted to minimum living standards just by improving delivery of public services)
Almost 40% of the Empowerment Gap comes from health care, drinking water and sanitation; in addition, hunger is a major issue for the poorest segments, and housing for the urban vulnerable
Apart from lacking the means, Indians also lack access to 46% of the basic services they need, with significant variations in the pattern of access deprivation across districts
A path of Stalled Reforms would leave 36% of India below the Empowerment Line and 12% below the Poverty Line in 2022, but the path of Inclusive Reforms can bring these down to 7% and 1% respectively â while achieving fiscal consolidation and reducing access deficit in basic services to 17%, from 46% currently. Raising government spending on subsidies alone delivers just 8% of the total impact. 4 themes are critical
Non-farm jobs deliver >50% of impact; 115 million jobs are needed (38 million more than Stalled Reforms) through 6 broad-ranging reforms and investments in 70-100 job creation engines
Agricultural yield growth delivers ~20% of impact, needing 9 farm sector initiatives and investment rebalancing towards rural infrastructure, research and extension
Public spending on basic services should grow at 7% p.a. in real terms and share of health, water and sanitation to rise from 20% to nearly 50%
Government spending effectiveness must improve from 50% to 75%, by working with private and social sector, community involvement and tight monitoring using technology
Six themes are essential to improve governance across the board (raise institutional capacity and strengthen external accountability)
Apache Hadoop Summit 2016: The Future of Apache Hadoop an Enterprise Architec...PwC
Â
Hadoop Summit is an industry-leading Hadoop community event for business leaders and technology experts (such as architects, data scientists and Hadoop developers) to learn about the technologies and business drivers transforming data. PwC is helping organizations unlock their data possibilities to make data-driven decisions.
Like other prosperous American cities, greater Seattle currently finds itself in the unenviable position of possessing both enormous amounts of wealth and staggering levels of homelessness. These slides accompany the McKinsey & Company report that looks at homelessness in King County, published in January 2020.
EY's European Banking Barometer â 2015 identifies the views of 226 senior European bankers across 11 markets regarding their views of the macro-economic outlook and the impact they think it will have on the banking industry in 2015.
For further information visit: www.ey.com/ebb
Adrian Jones presentation at InsureTech Connect 2021: What's Next for InsurTech?Adrian Jones
Â
Adrian Jones presentation at InsureTech Connect 2021, covering trends and predictions for the future of insurance technology, innovation, and advice for today's Cuthbert Heaths.
Shifting Trade Rules and the Future for North Americaâs Auto IndustryBoston Consulting Group
Â
Two major initiatives by the US to overhaul trade rules could have a massive impact on North Americaâs automotive manufacturing industry. Hereâs how companies should prepare.
2023 Q2 Crypto Industry Report | CoinGeckoCoinGecko
Â
After the exuberance of Q1, the crypto market took Q2 to consolidate the gains and increased slightly by 0.14%, from a total market cap of $1.238 trillion on March 31, 2023, to $1.240 trillion on June 30, 2023. April and May were relatively quiet months, particularly after Ethereumâs Shapella upgrade on April 12 as the market was absent of any strong overarching narrative. Prices of Bitcoin (BTC) and Ethereum (ETH) are now hovering around $30,000 and $1,900 respectively, with BTC climbing 6.9%, while ETH increased by 6.0% in Q2.
Our comprehensive 2023 Q2 Crypto Industry Report covers everything from the crypto market landscape to analyzing Bitcoin and Ethereum, deep diving into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, and reviewing how centralized exchanges (CEX) and decentralized exchanges (DEX) have performed.
Booz Allen Hamilton and Market Connections: C4ISR Survey ReportBooz Allen Hamilton
Â
Booz Allen Hamilton partnered with government market research firm Market Connections, Inc. to conduct the survey of military decision-makers. The research examined the main features of Integrated C4ISR through Enterprise Integration: engineering, operations and acquisition. Two-thirds of respondents (65 percent) agree agile incremental delivery of modular systems with integrated capabilities can enable rapid insertion of new technologies.
The global economy remains fragile going into 2023. There are possibilities of mild recession and stagflation in some economies. Deloitte 2023 Banking & Capital Markets Outlook shares comprehensive overview insights into the Banking and Capital market segments. Uncover about Retail Banking: Envisioning new ways to serve and engage with customers, Consumer Payments- build deeper financial relationships beyond transaction flows.
Summary: Even in a time of high biopharma valuations, adopting an activist mentality adds rigor to capital allocation and strategic decision-making, improving not just returns to shareholders but long-term value creation. Therefore, biopharma management teams and boards of directors should proactively assess the âfitnessâ of their capital allocation strategies and their alignment with operational performance goals by taking an outsiderâs view of the business even when times are good â and before a material stumble provides a compelling reason for an outsider to act. For more on this topic, go to http://www.ey.com/GL/en/Industries/Life-Sciences/EY-vital-signs-how-fit-is-your-capital-allocation-strategy.
One in four customers is planning to either use branches less or stop visiting branches altogether after the COVID-19 crisis, according to new BCG retail banking consumer âpulseâ survey.
Bcg cii report - one consumer, many interactions - december 2018Social Samosa
Â
The report highlights the massive, unparalleled change the media and entertainment industry is going through, with the exponential growth of media and type of content available creating a trillion customer touch points.
KYC automation using artificial intelligence (AI)EY
Â
Knowing Your Customer (KYC) is the process of understanding and validating the authenticity of the businessâ potential clients and risk that it might impose onto the relationship. KYC solutions enable access to detailed information ensuring the credibility of clients and expediting the client onboarding. KYC solution also automate previously manual processes and reduce repetition, saving time and money for the firm.
The KYC solution streamlines the KYC process by automating the processing of customer data, sorting the data by type and storing it in a data lake. The solution reduces clutter and maintains lean operations by centralizing KYC data for any branch to query from. The solution increases operational efficiency and reduces overhead manpower cost incurred in processing consumer data manually. The time to process a clientâs information is reduced from 18 minutes to 1 minute by leveraging on automation.
Find out more at www.ey.com/sg/fintechhub.
For enquiries, contact us via email at fintech@sg.ey.com.
Global Capital Confidence Barometer | How can you reshape your future before ...EY
Â
The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their Capital Agendas â EY framework for strategically managing capital. It is a regular survey of senior executives from large companies around the world, conducted by Thought Leadership Consulting, a Euromoney Institutional Investor company. Our panel comprises select global EY clients and contacts and regular Thought Leadership Consulting contributors.
Cracking the Code on Consumer Fraud | Accentureaccenture
Â
"Accenture research highlights how public safety agencies need a new approach to tackle consumer fraud â more intelligence-led,
proactive and collaborative."
China Exit or Co-Investment Opportunities for German PE InvestorsL.E.K. Consulting
Â
L.E.K.'s Karin von Kienlin recently presented at BVK on a study conducted by L.E.K. Munich and Shanghai. They wished to:
- Understand developments in Chinese equity investments in both the domestic China / pan-Asian market and cross-border investments between China and Germany / Europe
- Identify trends in likely future investment behavior and its drivers
- Defining success factors both for Chinese and German investors / corporates as to how to benefit from the potential opportunities of cross-border investments and cooperation
Learn more in the presentation here.
IBOR transition: Opportunities and challenges for the asset management industryEY
Â
EY Wealth & Asset Management explores the practical implications and the way forward for the transition to the new risk-free rates. This presentation aims to help asset managers and asset owners explore IBOR transition strategies that are compliant and future-focused.
L.E.K. Consulting recently surveyed more than 200 U.S. brand managers and packaging stakeholders at consumer packaged goods companies to understand their packaging needs and views on trends driving demand.
The survey focused on topics that include:
- Brand trends and their effect on packaging demand
- Shifts within packaging (e.g., new materials, packaging innovations)
- Perspectives on packaging demand (including forecast spend on packaging for their brands)
This Executive Insights analyzes key findings from this proprietary research
MGI: From poverty to empowerment: Indiaâs imperative for jobs, growth, and ef...McKinsey & Company
Â
Some 680 million people, or 56% of India, live below MGIâs Empowerment Line and lack acceptable minimum standards of living; the Empowerment Gap is 4% of GDP in value terms (about 7 times the official poverty gap)
From 2005 to 2012, 75% of the improvement in living standards was due to rising incomes, the rest due to government spending; to reduce the gap faster, India needs more productive jobs and higher effectiveness of government spending (e.g., 85 million people below the official poverty line could have been lifted to minimum living standards just by improving delivery of public services)
Almost 40% of the Empowerment Gap comes from health care, drinking water and sanitation; in addition, hunger is a major issue for the poorest segments, and housing for the urban vulnerable
Apart from lacking the means, Indians also lack access to 46% of the basic services they need, with significant variations in the pattern of access deprivation across districts
A path of Stalled Reforms would leave 36% of India below the Empowerment Line and 12% below the Poverty Line in 2022, but the path of Inclusive Reforms can bring these down to 7% and 1% respectively â while achieving fiscal consolidation and reducing access deficit in basic services to 17%, from 46% currently. Raising government spending on subsidies alone delivers just 8% of the total impact. 4 themes are critical
Non-farm jobs deliver >50% of impact; 115 million jobs are needed (38 million more than Stalled Reforms) through 6 broad-ranging reforms and investments in 70-100 job creation engines
Agricultural yield growth delivers ~20% of impact, needing 9 farm sector initiatives and investment rebalancing towards rural infrastructure, research and extension
Public spending on basic services should grow at 7% p.a. in real terms and share of health, water and sanitation to rise from 20% to nearly 50%
Government spending effectiveness must improve from 50% to 75%, by working with private and social sector, community involvement and tight monitoring using technology
Six themes are essential to improve governance across the board (raise institutional capacity and strengthen external accountability)
Apache Hadoop Summit 2016: The Future of Apache Hadoop an Enterprise Architec...PwC
Â
Hadoop Summit is an industry-leading Hadoop community event for business leaders and technology experts (such as architects, data scientists and Hadoop developers) to learn about the technologies and business drivers transforming data. PwC is helping organizations unlock their data possibilities to make data-driven decisions.
Like other prosperous American cities, greater Seattle currently finds itself in the unenviable position of possessing both enormous amounts of wealth and staggering levels of homelessness. These slides accompany the McKinsey & Company report that looks at homelessness in King County, published in January 2020.
EY's European Banking Barometer â 2015 identifies the views of 226 senior European bankers across 11 markets regarding their views of the macro-economic outlook and the impact they think it will have on the banking industry in 2015.
For further information visit: www.ey.com/ebb
Adrian Jones presentation at InsureTech Connect 2021: What's Next for InsurTech?Adrian Jones
Â
Adrian Jones presentation at InsureTech Connect 2021, covering trends and predictions for the future of insurance technology, innovation, and advice for today's Cuthbert Heaths.
Shifting Trade Rules and the Future for North Americaâs Auto IndustryBoston Consulting Group
Â
Two major initiatives by the US to overhaul trade rules could have a massive impact on North Americaâs automotive manufacturing industry. Hereâs how companies should prepare.
2023 Q2 Crypto Industry Report | CoinGeckoCoinGecko
Â
After the exuberance of Q1, the crypto market took Q2 to consolidate the gains and increased slightly by 0.14%, from a total market cap of $1.238 trillion on March 31, 2023, to $1.240 trillion on June 30, 2023. April and May were relatively quiet months, particularly after Ethereumâs Shapella upgrade on April 12 as the market was absent of any strong overarching narrative. Prices of Bitcoin (BTC) and Ethereum (ETH) are now hovering around $30,000 and $1,900 respectively, with BTC climbing 6.9%, while ETH increased by 6.0% in Q2.
Our comprehensive 2023 Q2 Crypto Industry Report covers everything from the crypto market landscape to analyzing Bitcoin and Ethereum, deep diving into the decentralized finance (DeFi) and non-fungible token (NFT) ecosystems, and reviewing how centralized exchanges (CEX) and decentralized exchanges (DEX) have performed.
Booz Allen Hamilton and Market Connections: C4ISR Survey ReportBooz Allen Hamilton
Â
Booz Allen Hamilton partnered with government market research firm Market Connections, Inc. to conduct the survey of military decision-makers. The research examined the main features of Integrated C4ISR through Enterprise Integration: engineering, operations and acquisition. Two-thirds of respondents (65 percent) agree agile incremental delivery of modular systems with integrated capabilities can enable rapid insertion of new technologies.
The global economy remains fragile going into 2023. There are possibilities of mild recession and stagflation in some economies. Deloitte 2023 Banking & Capital Markets Outlook shares comprehensive overview insights into the Banking and Capital market segments. Uncover about Retail Banking: Envisioning new ways to serve and engage with customers, Consumer Payments- build deeper financial relationships beyond transaction flows.
Pacific Asset Management is sub-advisor to the AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)*
2014 has seen the consensus of higher Treasury yields and economic activity fail to materialize. Lower rates and risk premiums have led to strong returns year-to-date. In this commentary, Portfolio Managers David Weismiller, Michael Marzouk, and Bob Boyd discuss the current market environment, outlook, and portfolio positioning.
*Effective but not available for sale at this time. Go to www.advisorshares.com for more information.
Trekking markets & more with InvestrekkInves Trekk
Â
The report presents a summary of the Indian market activity during the week ended 27 June 2021. It also provides some important insights about the global market trends and Indian Market outlook for the Week beginning 28 June 2021.
2022 was generally turbulent for investors, especially those with a traditional stocks and bonds portfolio, who were hit particularly hard by the yearâs headwinds. With inflation, Russiaâs war with Ukraine, aggressive central bank tightening, and Chinaâs lockdowns driving volatility, global economies have been grappling with rapid adjustments in interest rates, sentiment and valuations. However, while fears of recession loom, there may be some silver linings ahead for agile investors.
The Nicola Wealth Strategic Outlook 2023, which was hosted by President | Client Relationship Manager, David Sung, featured presentations by Chairman & CEO John Nicola, CIO Rob Edel, CFO & Head of Private Capital Bijal Patel, and Managing Director, Real Estate Mark Hannah. Each professional shared their perspectives on the trends that are shaping the investing environment, and how these developments may impact investors and asset classes over the coming year.
Are stock market fears overblown. should we buy the dipAlpesh Patel
Â
So far, 2022 has been a turbulent year for equities. With fears of inflation and Fed intervention, the S&P 500 has shed about 6%. But not everyone is worried. Analysts at Goldman Sachs believe the market will end the year up. Which begs the question: If stock market fears are overblown, should we buy the dip?
By Principal
Global outlook: Slowing growth but a world in better health. We expect the global economy to grow at a slower pace in 2022 as fiscal and monetary tailwinds fade. Inflation, supply chains, and central banking policies will be key for investors in an environment where pandemic-induced changes and disruptions continue to reverberate.
Inflation: Persistent or transient? We believe inflation is likely to remain elevated in 2022 and recommend investors be open-minded on the impact to their portfolio construction and rebalancing needs. Once supply chain bottlenecks and labor pressures ease, we expect inflation to moderate.
Monetary policy will be in the crosshairs. Central banks have indicated that the clock is ticking down on extraordinary monetary policies in response to COVID-19. Given the uncertainty around inflation, policy shifts
will be challenging to execute and there will be significant pressure on central banks to get policy âjust rightâ.
Change induced by the pandemic is creating investment opportunities.
Our investment strategy identifies key themes and strategic drivers that have been strengthened by the pandemic. Niche, or non-traditional sectors, that remained particularly resilient are one of the most significant
investment opportunities emerging from the pandemic.
Office demand has weakened and may rebalance the sector. Lower-quality or poorly located offices in urban markets are clearly disrupted and need to be treated with caution. Investors need to enhance their
opportunity set to markets that offer a compelling mix of lifestyle, talent, and demographics while focusing on high-quality assets that are positioned to meet the evolving environmental, social, and governance (ESG) needs of tenants.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Â
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to swap pi coins to foreign currency withdrawable.DOT TECH
Â
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
Â
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The secret way to sell pi coins effortlessly.DOT TECH
Â
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. Elemental Economics - Mineral demand.pdfNeal Brewster
Â
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
Â
After this first you should: Understand the nature of mining; have an awareness of the industryâs boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industriesâ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
What website can I sell pi coins securely.DOT TECH
Â
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
Â
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
2. Foreword
Every year presents unique challenges. In 2020, together we confronted a global
pandemic and lockdown. In 2021, global economies slowly reopened as parts of
the world returned to more normal patterns of life.
2022 has brought new headwinds, some we havenât seen in over 40 years.
As inflation proved more resilient than anticipated, rising to highs we havenât seen
in decades, central banks aggressively raised rates to slow its progress. With both
stocks and bonds suffering significant losses, 2022 delivered one of the worst
years ever for balanced portfolios.
From a geopolitical perspective, Russiaâs invasion of Ukraine caused great human
suffering and disrupted global markets.
To prepare for the year ahead, we rely on our world-class Global Investment
Strategy Group to help us identify both the risks and opportunities that investors
may face. Despite the headwinds to growth, they see the potential for stronger
markets in 2023 and beyond.
In times like these, we rely on each other and on the relationships we have
created over time. We are honored to stand by your side.
Thank you for your continued trust and confidence in J.P. Morgan.
Sincerely,
David Frame
CEO, U.S. Private Bank
Martin Marron
CEO, International Private Bank
2
3. Highlights from the 2023 Outlook
1. The best in a decade. A dramatic reset in valuations
has, in our view, created the most attractive entry point
for stocks and bonds in over a decade.
2. Bad news, good news. The bad news: We think a
recession is likely in 2023. The good news: Central
banks should stop hiking and inflation will likely fall.
3. Bonds are back. Core fixed income now offers the
potential for protection, yield and capital appreciation.
4. Reversal of fortunes. We expect mega-cap
technology stocks to underperform and small
cap stocks to outperform.
5. Real money. The era of underinvestment in the real
economy is over.
3
4. Contents
INTRODUCTION
Pgs. 4â6
Out of the depths
WEAKER GROWTH
Pgs. 7â18
The consequences of
global policy tightening
Pgs. 19â31
Weakness across
the global economy
STRONGER MARKETS: VALUATION RESETS
Pgs. 35â37
Bonds
Pgs. 38â41
Stocks
Pgs. 42â45
Alternatives
CONCLUSION
Pgs. 46â49
Focus on your process
INVESTMENT PRODUCTS: ⢠NOT FDIC INSURED ⢠NO BANK GUARANTEE ⢠MAY LOSE VALUE
The views expressed herein are based on current conditions, subject to change and may differ from other JPMorgan Chase
& Co. affiliates and employees. The views and strategies may not be appropriate for all investors. Investors should speak to
their financial representatives before engaging in any investment product or strategy. This material should not be regarded
as research or as a J.P. Morgan Research Report. Outlooks and past performance are not reliable indicators of future results.
Please read additional regulatory status, disclosures, disclaimers, risks and other important information at the end of
this material.
4
5. INTRODUCTION
Out of
the depths
Most things that could have gone wrong for
investors did in 2022. Markets that entered the
year with extended valuations buckled in the
face of elevated inflation, an aggressive global
rate hiking cycle, war in Ukraine and economic
challenges in China.
Unusually, both stocks and bonds suffered big
losses in 2022âone of the worst years ever for a
balanced portfolio.
5
6. INTRODUCTION
As we move into 2023, investors still have
many difficult questions to consider.
How much further
could interest rates rise?
When will inflation
come back to earth?
Is a recession inevitable,
and how bad could it get?
6
7. INTRODUCTION
In this yearâs outlook, we evaluate the fallout from a historic
global tightening cycleâhigher interest rates will rein in
inflation, but recessions are likely in the United States and
Europeâand we assess the degree to which market pricing
already reflects a future downturn.
Even as economic growth deteriorates, we think markets
could stabilize in 2023.
Higher bond yields offer total return potential, and they
could provide portfolios with valuable ballast during a
downturn. Equity markets may remain challenged by
weaker earnings growth, but stock prices now incorporate
a substantial degree of future damage.
Precisely because markets are so battered, lower equity
valuations and higher bond yields, in our view, mean that
investors now enjoy the most attractive entry point for
a traditional portfolio in over a decade. Already, market
dislocations have appeared that investors can take
advantage of. Those with capital to invest can find the
potential for compelling returns across asset classes and
risk levels.
As you design and revise your goals-based plan, thatâs
welcome news indeed.
7
9. 9
WEAKER GROWTH
In 2022, central banks
around the world launched
an aggressive global
rate hiking cycle to tame
elevated inflation.
10. WEAKER GROWTH
As of late 2022, 26 of the 31 central
banks that we track were raising
rates, up from just two at the start
of 2021. The Federal Reserve (Fed)
engaged in its most aggressive round
of interest rate hikes in 40 years.
The European Central Bank (ECB) has been no less forceful,
recently raising its policy rate by 0.75% to levels last seen
before the global financial crisis (GFC). And the ECB seems
set to keep raising rates despite the clear threats to growth.
After a little over a decade of low or negative policy rates,
the campaign against inflation caused a historic rout in bond
markets. The Barclays Global Aggregate Index is on track to
lose over 10% in 2022, its worst year on record. Negative
yielding debt (a pervasive feature of the post-GFC landscape)
has disappeared everywhere except Japan.
CENTRAL BANKS RAISING INTEREST RATES
Source: FactSet. Data as of November 2022. 10
11. WEAKER GROWTH
Across the global economy,
many households and companies
are facing suddenly higher
borrowing costs.
11
In the United States, rates for new 30-year mortgages
breached 7%, up from ~3.25% at the start of 2022, and
housing affordability has fallen to its lowest level since 2007.
The economic hit is even more notable in Australia, New
Zealand, the United Kingdom and Canada, where 10%â20%
of households will face higher payments on existing
mortgages starting next year.
Inflation remains well above central bank targets, but we
note a subtle shift in monetary policy. Central banks in
Australia, Norway, Sweden, Switzerland and Canada have
all moved to a slower pace of tightening. The Fed will likely
follow suit to assess the effects of its tightening cycleâhigher
rates impact the economy with a lag.
The rate hiking campaigns will likely come to an end in 2023,
but the historic pace of hikes has already posed serious risks
to global economic growth.
In the United States,
rates for new 30-year
mortgages breached 7%.
12. GLOBALLY COORDINATED TIGHTENING
% of central banks whose last move was a hike
Source: FactSet. Data as of October 31, 2022. Includes 31 central banks.
Months
Source: Bloomberg Finance L.P. Data as of November 4, 2022
THE MOST AGGRESSIVE FED HIKING CYCLE IN FOUR DECADES
Change in fed funds rate since hiking began, %ppts
WEAKER GROWTH
GLOBALLY COORDINATED TIGHTENING
% of central banks whose last move was a hike
100%
0%
20%
40%
60%
80%
â06 â08 â10 â12 â14 â16 â18 â20 â22
Source: FactSet. Data as of November 2022. Includes 31 central banks.
THE MOST AGGRESSIVE FED HIKING CYCLE IN FOUR DECADES
Change in fed funds rate since hiking began, ppts
5%
0%
1%
2%
3%
4%
1987â89
1994â95
1999â00
2004â06
2015â18
2022
0 4 8 12 16 20 24 28 32 36
MONTHS
Source: Bloomberg Finance L.P. Data as of November 2022
12
13. Source: Bloomberg Finance L.P. Data as of October 2022.
INTEREST RATES ABOVE EXPECTED INFLATION
%
WEAKER GROWTH
Higher rates will
likely rein in growth
In many economies,
monetary policy is now
restricting growth.
In the United States, most members of the Fedâs Federal
Open Market Committee think a âneutralâ policy rate
that neither restrains nor stimulates economic growth is
around 2.5%. Thatâs well below the current policy rate.
Several Fed governors have argued for a pause in rate
hikes in the first quarter of 2023, concerned they could
go too far in their efforts to control inflation.
INTEREST RATES ABOVE EXPECTED INFLATION
%
6%
5%
4%
3%
2%
1%
0%
Â1%
2Âyear Treasury yield 2Âyear implied inďŹation
â17 â18 â19 â20 â21 â22
Source: Bloomberg Finance L.P. Data as of November 2022.
13
14. Source: Bloomberg Finance L.P. Data as of October 2022.
TREASURY YIELD CURVE IS DEEPLY INVERTED
Spread between 2Â and 10Âyear Treasury yield, bps
WEAKER GROWTH
Markets seem to agree that interest rates are restrictive.
Most yield curves are deeply inverted, and Treasury rates at
most tenors are trading above the expected rate of inflation
over the same period.
Higher interest rates are meant to slow the economy in part
by discouraging companies and households from borrowing.
So far, they are doing just that.
Activity in interest rateâsensitive sectors such as real estate
has already declined dramatically. Instead of moving or
refinancing mortgages to build new additions, homeowners
are sitting tight. Capital markets are likewise dormant as
companies balk at higher financing costs. Globally, issuance
of corporate debt is down ~80%, and initial public offerings
are USD600 billion lower than they were in 2021.
Because most financial transactions and trade are
denominated in dollars, a strong USD (itself a function
of Fed rate hikes and the war in Ukraine) adds another
source of resistance for global economic activity. In
addition, increased volatility in capital markets could
reduce corporate confidence and dampen investment
and hiring plans.
Given the lagged effects of higher rates, we expect
weakness from housing, capital markets and technology
to spread in 2023.
TREASURY YIELD CURVE IS DEEPLY INVERTED
Spread between 2-year and 10-year Treasury yields, basis points
â â â â â â â
â
â
â
â
â
â â
Â
350
300
250
200
150
100
50
0
Â50
-100
â96 â98 â00 â02 â04 â06 â08 â12 â16 â20
â18
â14
â10 â22
Source: Bloomberg Finance L.P. Data as of November 2022.
14
15. WEAKER GROWTH
Labor
markets will
likely soften
While the unemployment
rate is low and jobs growth
is still healthy in the United
States, demand for labor
may be past its peak.
Both the job openings rate and the quits rate have declined,
albeit to elevated levels. Average hourly earnings seem to
have hit their high-water mark and are now rising at a ~4.5%
pace. Corporate earnings reports also suggest moderating
labor demand and cost pressure.
These data points signal that the Fed is getting its desired
effect of lower demand for workers. But success is far from
assured, and turning points in the labor market are difficult
to identify in real time.
As demand erodes and corporate profit margins deteriorate,
more companies will likely freeze hiring or lay off workers to
cut costs. Many companies that were darlings of the social-
distancing era (e.g., Amazon, Peloton and Meta) have done
so already.
We expect the unemployment rate to rise in 2023 as higher
rates broadly slow the economy.
15
16. Source: Bureau of Labor Statistics, Haver Analytics. Data as of September 2022.
LABOR PRESSURES ARE COOLING
Quits rate, % Job openings rate, %
Source: Bureau of Labor Statistics, Haver Analytics. Data as of October 2022.
UNEMPLOYMENT RATE NEAR RECORD LOWS
U.S. unemployment rate, %
WEAKER GROWTH
DEMAND FOR LABOR PAST THE PEAK
Quits rate, % Job openings rate, %
â01 â04 â07 â10 â13 â16 â19 â22
3.5%
1.0%
1.5%
2.0%
2.5%
3.0%
7.5%
1.5%
2.5%
3.5%
4.5%
5.5%
6.5%
Quits
Job openings
Sources: Bureau of Labor Statistics, Haver Analytics. Data as of September 2022.
UNEMPLOYMENT RATE NEAR RECORD LOWS
U.S. unemployment rate, %
11%
9%
7%
5%
3%
Recession
â80 â86 â92 â98 â04 â10 â16 â22
Sources: Bureau of Labor Statistics, Haver Analytics. Data as of October 2022.
16
17. WEAKER GROWTH
A bumpy path
back to trend
inflation
We see evidence that inflation
is on track to fall, but how
far and how fast? The data
has improved on several
fronts: global supply chains,
commodities and goods prices.
Supply chain pressuresâthe result of excess demand for
goods during the pandemicâhave largely eased. Delivery
times as measured by Purchasing Manager Index (PMI)
surveys have fallen to average levels. Shipping costs have
collapsed by around 70% from their peaks.
In the commodities sector, the picture is mixed across
economies, but prices generally look to be heading lower.
Global industrial commodities prices are down more than
35% from their highs and are negative on a year-over-year
basis. Prices for oil and natural gas likewise seem past their
peaks, though geopolitical factors play a key role here.
War in Ukraine leaves Europe grappling with a precarious
energy supply.
70%
Shipping costs
have collapsed by
around 70% from
their peaks.
35%
Global industrial
commodities prices
are down more
than 35% from
their highs.
17
18. 18
WEAKER GROWTH
Meanwhile, the United States is the top global producer
of energy. In addition, the strong U.S. dollar helps to
temper price increases for imported goods.
Still, services inflation remains stubbornly high, a reflection
of tight labor markets. The U.S. official rent and owners'
equivalent rent inflation, which accounts for roughly one-
third of overall U.S. inflation measures, will probably stay
elevated (though private measures suggest that rent
increases are decelerating rapidly). Given the signals from
private measures, we are looking for softer rental inflation
readings by the middle of next year.
Globally, we think inflation will continue its downward
trajectory throughout 2023, reaching levels consistent
with most central bank targets by 2024.
Weaker growth, softer labor
markets and falling inflation
will likely lead to the end of
the global rate hiking cycle
in 2023. Investors may at
first glance welcome the
news. But historical evidence
suggests that the real
economy suffers the greatest
damage after interest rates
have already risen.
19. Source: Bureau of Economic Analysis. Data as of August 2022.
GOODS PRICE INFLATION FALLING WHILE SERVICES REMAIN STICKY
U.S. PCE, 6Âmonth % change annualized
Source: NYFEDLSE, Haver Analytics. Data as of September 2022.
THE GLOBAL SUPPLY CHAIN IS RAPIDLY CLEARING
Global Supply Chain Pressure Index, 0 = normal
WEAKER GROWTH
GOODS PRICE INFLATION IS FALLING
WHILE SERVICES PRICE INFLATION REMAINS STICKY
U.S. PCE, 6-month % change annualized
15%
10%
5%
0%
Â5%
Â10%
Services
Goods
â12 â14 â16 â18 â20 â22
Source: Bureau of Economic Analysis. Data as of September 2022.
THE GLOBAL SUPPLY CHAIN IS RAPIDLY CLEARING
Global Supply Chain Pressure Index, 0 = normal
5
Â1
0
1
2
3
4
â12 â14 â16 â18 â20 â22
Sources: New York Fed, Haver Analytics. Data as of September 2022.
19
20. WEAKER GROWTH
Weakness
across the global
economy
Thereâs virtually no place to hide:
Across regions and sectors, the
global economy faces an array of
challenges to growth.
20
21. WEAKER GROWTH
The economic challenges that
dominated 2022âelevated
inflation, tightening financial
conditions, energy disruptions,
weakening growth in Chinaâ
wonât vanish overnight.
We expect friction in
the global economy
to continue to build.
A monetary policyâinduced recession
in the United States seems more
likely than not in 2023, while Europe
appears likely to face a more difficult
environment characterized by stagnant
growth and elevated inflation. Chinaâs
path will be determined by policymakersâ
commitment to zero COVID, while Latin
America may be a relative bright spot.
21
22. Source: J.P. Morgan, S&P Global, Haver Analytics. Data as of October 2022.
GLOBAL ACTIVITY SURVEYS SIGNAL SLIGHT CONTRACTION
Global PMIs, 50+ = expansion
WEAKER GROWTH
GLOBAL ACTIVITY SURVEYS SIGNAL SLIGHT CONTRACTION
Global PMIs, 50+ = expansion
65
60
55
50
45
40
Recession
â00 â02 â04 â06 â08 â10 â12 â14 â16 â18 â20 â22
Sources: J.P. Morgan, S&P Global, Haver Analytics. Data as of October 2022.
22
23. WEAKER GROWTH
United States:
Recession more
likely than not
While growth in the United States has been relatively
resilient, we think it is only a matter of time before
debt defaults pick up and workers lose their jobs.
Typically, tightening cycles first impact interest
rateâsensitive sectors. Later, they lead to job
losses across the economyâsometimes even
12â18 months after rates reach restrictive levels.
We expect to see more job cuts in the technology,
residential real estate and manufacturing sectors.
23
24. WEAKER GROWTH
INTEREST RATEâSENSITIVE HOUSING GETTING HIT
Seasonally Adjusted Annual Rate (SAAR), thousands of units
â â
â â
â â
â â
â â
â â
8,000
7,000
6,000
5,000
4,000
3,000
2,000
New 1Âfamily home sales
Total existing home sales
Recession
â00 â04
â02 â08
â06 â12
â10 â16
â14 â20
â18 â22
Sources: National Association of Realtors, Census Bureau. Data as of October 2022.
24
25. WEAKER GROWTH
Importantly though,
we donât expect
a downturn
anything like the
Great Recession.
Financial, corporate and household
sectors are well capitalized today,
which they decidedly were not
during the financial crisis.
For example, the banking system has a loan-to-deposit ratio
of ~70% versus 100% prior to the financial crisis. Corporates
and households are currently running a more robust surplus
(total income less total spending) than they have been prior
to any recession since 1950.
In short, a U.S. recession is likely on its way, but we donât
think it will be a crisis. Corporates and
households are currently
running a more robust
surplus than they
have been prior to any
recession since 1950.
25
26. WEAKER GROWTH
China:
Ongoing property
and COVID woes
In China, the fallout from the
collapsing property sector and the
governmentâs commitment to zero
COVID policies could continue to
rein in GDP growth.
Exports are running above pre-COVID rates, but
building sales and new construction growth are
plummeting and as of yet show no signs of a
turn. Recent policy announcements signal more
government support, but we will be looking for
confirmation from the data.
Chinese policymakers are directing investment
to infrastructure development. Yet the modest
growth impulse has been thwarted by the stop-
start cycle of COVID lockdowns as well as the
troubled property sector. Through 2023, we may
see a slow pivot toward reopening, but it will likely
be staggered and careful.
For now, at least, we expect a government focus
on economic stability, not stimulus. We see no
quick rebound in Chinese growth.
Reopening will likely be
staggered and careful.
Government will likely
focus on economic
stability, not stimulus.
26
27. 27
WEAKER GROWTH
Europe:
On the brink
of a downturn
By any measure, Europeâs
economic situation looks bleak,
even though growth has held
up better than many would
have expected.
28. WEAKER GROWTH
The war in Ukraine simultaneously
pushes up inflation, reduces real
incomes, weakens external finances
and challenges the credibility of the
ECBâs 2% inflation target.
Additional rate hikes to battle inflation will
inevitably depress growth, and bond markets
do not seem likely to endorse large-scale fiscal
support programs.
Many supply chains have been disrupted, and
business and household confidence has rarely
been weaker. The end of the war would bolster
the economy, and would certainly improve business
and consumer sentiment, but we are unable to
include such a scenario in our base case for 2023.
28
29. WEAKER GROWTH
Indeed, reliance
on Russian energy
poses a critical risk
to economic output.
90%
Even though European policymakers have
ramped up natural gas storage levels to ~90%
of total capacity, futures prices still suggest
a precarious situation through next year
and beyond. Winter weather, which has so
far been mild, will likely determine whether
the industrial sector will need to curtail
production to ensure that households have
heat and electricity.
29
30. Source: Bloomberg Finance L.P., Gas Infrastructure Europe. Data as of November 4, 2022.
EUROPEAN NATURAL GAS STORAGE IS NEAR FULL
Natural gas storage, % full
Source: sentix GmbH, Haver Analytics. Data as of November 2022.
BUT ECONOMIC SENTIMENT IS TERRIBLE
Sentix Euro Area Economic Expectations/Sentiment Index, % balance
WEAKER GROWTH
EUROPEAN NATURAL GAS STORAGE IS NEARLY FULL...
Natural gas storage, % full
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sep â21 Jan â22 May â22 Oct â22
Source: Bloomberg Finance L.P. Gas Infrastructure Europe. Data as of November 2022.
...BUT ECONOMIC SENTIMENT IS TERRIBLE
Sentix Euro Area Economic Expectations/Sentiment Index, % balance
Â50%
Â30%
Â10%
10%
30%
50%
â05 â06 â07 â08 â09 â10 â11 â12 â13 â14 â15 â16 â17 â18 â19 â20 â21 â22
Sources: sentix GmbH, Haver Analytics. Data as of November 2022.
30
31. WEAKER GROWTH
Latin America:
A (relative)
bright spot
For nearly two years, Latin
America has outperformed
other emerging and developed
markets both in terms of growth
and market performance.
Despite the aggressive Fed tightening cycle, major
currencies in the region strengthened in 2022.
The Brazilian real and Mexican peso rose 9%
and 5.5%, respectively.
Latin American central banks were among the first to
start hiking rates in 2021. By the end of 2022, most were
able to pause, and itâs possible they could start lowering
rates by the middle of 2023. This would provide an
important tailwind for Latin Americaâs equity markets,
which are trading at some of their lowest valuations over
the last 15 years.
31
32. OPTIONAL EYEBROW TITLE
WEAKER GROWTH
If monetary policy does ease, we
donât think exchange rates will suffer.
Thatâs because real rates (especially
in Brazil) are among the highest in
the world.
Latin America will not escape the effects of a weakening
global economy. But it should be relatively sheltered by
its significant exposure to the commodities sector.
Politics pose the main risk to Latin Americaâs economies.
If public spending gets out of hand, fiscal stability could
be called into question.
32
34. Source: J.P. Morgan Asset Management. Note: The left bars represent 2022, and right bars 2023 estimates.
2023 LTCMAS PRESENT IMPRESSIVE EXPECTED RETURNS
Annualized expected return, %
STRONGER MARKETS
Hereâs what the
bear market of
2022 has delivered:
As noted, a dramatic reset
in valuationsâhigher yields,
lower stock multiplesâhas,
in our view, created the most
attractive entry point for a
traditional portfolio of stocks
and bonds in over a decade.
In fact, our long-term outlook
for returns across asset classes
are materially higher than they
were just last year.
LONG-TERM CAPITAL MARKET ASSUMPTIONS
PRESENT FAVORABLE EXPECTED RETURNS
Forecasted annual return over the next 10-15 years, %
2022 LTCMAs Equities Fixed Income
9.8 10.1
2023 LTCMAs
7.9 6.9 6.8
6.5
4.6
4.1 3.7 3.9
2.6
2.1
U.S. Large Cap EAFE Equity EM Equity Muni Bonds U.S. Agg Bonds U.S. HY Bonds
Alternatives
9.9
8.1
5.8 5.7
5.0
3.6
DiversiďŹed Private U.S. Core
Hedge Funds Equity Real Estate
Source: J.P. Morgan Asset Management. Data as of September 30, 2022.
34
35. Source: Bloomberg Finance L.P. Data as of November 4, 2022.
U.S. EQUITY VALUATIONS COMPRESSED BELOW LONGÂTERM AVERAGE
S&P 500 NTM P/E ratio
Source: Bloomberg Finance L.P. Data as of November 4, 2022. Note: Investment grade bonds proxied by the JULIY Index.
BOND YIELDS AT THEIR HIGHEST LEVELS IN A DECADE
Yield, %
STRONGER MARKETS
For 2023, we think investors can focus on two central
questions:
What assets might help protect my portfolio through
a recession?
Our answer: Core bonds.
How much future damage to cash flows and corporate
earnings do risk assets already reflect?
Our answer: Substantial riskâbut likely not all.
We think investors can now find opportunity in core
bonds, preferred equities, small- and mid-cap stocks,
and infrastructure and transportation assets.
Through 2023, as markets shift to reflect the economic
weakness we expect, more opportunities in sectors such as
real estate and large-cap equities will likely appear.
In the following sections, we assess risks and opportunities
across asset classes.
U.S. EQUITY VALUATIONS NEAR LONG-TERM AVERAGE
S&P 500 NTM P/E ratio
24x
22x
20x
18x
16x
14x
12x
10x
+/Â 1 SD
Average
â02 â06 â10 â14 â18 â22
Source: Bloomberg Finance L.P. Data as of November 2022. Note: It is not possible to invest directly in an index.
BOND YIELDS AT THEIR HIGHEST LEVELS IN A DECADE
Yield, %
10%
8%
6%
4%
2%
0%
Â2%
U.S. investment grade bonds
10Âyear Treasury
10Âyear Treasury less expected inďŹation
â05 â06 â07 â08 â09 â10 â11 â12 â13 â14 â15 â16 â17 â18 â19 â20 â21 â22
Source: Bloomberg Finance L.P. Data as of November 2022. Note: Investment grade bonds proxied by the JULIY Index. It is not
possible to invest directly in an index.
35
37. YIELDS ACROSS THE FIXED INCOME LANDSCAPE ARE COMPELLING
Yield, %
Source: J.P. Morgan Private Bank, Bloomberg Finance L.P. TEY = TaxÂEquivalent Yield. Note: Investment Grade represented by J.P. Morgan JULI,
Munis by the Bloomberg Muni Bond Index, Preferreds by ICE BofA US High Yield Inst. Capital Securities Index, and Broad HY by J.P. Morgan
Domestic HY Index. Data as of October 31, 2022
Source: Bloomberg Finance L.P., BoA. Data as of October 26, 2022. Note: Preferreds proxied by the HIPS Index.
PREFERRED EQUITY YIELDS IMPLY COMPELLING FORWARD RETURNS, %
STRONGER MARKETS
Only a few quarters ago, traditional fixed income faced
a serious challenge: It provided neither compelling levels
of income nor adequate protection against an economic
downturn. Today, with Treasury, corporate and municipal
bond yields at their highest levels in a decade, both
income and portfolio ballast are once again on offer.
Thatâs a change that all investors should pay
attention to.
Current yields in many parts of the fixed income complex
are now equivalent to historical equity returns. This
could give investors an opportunity to reach their goals
while taking less risk. As interest rates fall in a recession,
longer-duration core fixed income (e.g., investment-grade
corporates or municipal bonds) could provide potential
total returns well into the teens.
YIELDS ACROSS THE FIXED INCOME LANDSCAPE
Yield, %
9.1%
8.5%
8.4%
4.7%
3.9%
3.7%
6.3%
1.9%
2.8%
0.0%
0.5%
1.5%
4.0%
3.8%
4.2%
5.6%
0%
2%
4%
6%
8%
10%
November 21, 2022
December 31, 2021
10Y UST Euro IG 3M US US IG US Munis US Euro HY US HY
TÂBill (TEY) Preferreds
PREFERRED EQUITY YIELDS
Yield, %
8%
6%
4%
2%
0%
RiskÂfree yield
Credit spread
â13 â14 â15 â16 â17 â18 â19 â20 â21 â22
Sources: Top chart: J.P. Morgan Private Bank, Bloomberg Finance L.P. TEY = Tax-Equivalent Yield. Note: Investment Grade represented by J.P. Morgan
JULI, Munis by the Bloomberg Muni Bond Index, Preferreds by ICE BofA US High Yield Inst. Capital Securities Index, and Broad HY by J.P. Morgan
Domestic HY Index. Data as of November 2022
Source: Bottom chart: Bloomberg Finance L.P. Data as of November 2022. Note: Investment grade bonds proxied by the JULIY Index. Risk-free yield
proxied by the U.S. 10-year Treasury yield. 37
38. STRONGER MARKETS
In fact, market pricing suggests that
short-term interest rates will remain
above 3.1% for the better part of the
next decade. We believe that outcome
is unlikely, and think investors should
lock in elevated yields now.
Moving beyond core fixed income, potential returns and risks are
greater when we consider less creditworthy issuers or securities
that are subordinate in the capital structure.
As we assess the asset class, the high yield bond market is pricing
in a deceleration in economic growth and deterioration in credit
quality, but not yet an outright recession. Even so, its all-in yield of
nearly 10% offers an attractive alternative to equity exposure even
after accounting for potential losses from default.
Meanwhile, preferred equities could be interesting for some
investors. They display characteristics of both fixed income (prices
are determined in part by interest rates) and equities (they react to
changing perceptions about corporate earnings). Both rising rates
and concerns about economic growth sparked a ~20% drawdown
in these securities so far this year.
We like the entry point for preferred equities. Unlike high yield
bonds, default risk is more limited, given that investment grade
companies are the most common issuers. Whatâs more, prices
could rebound if yields decline. U.S. taxpayers also benefit from
the qualified dividend income tax treatment of the coupons.
38
40. STRONGER MARKETS
No one knows precisely when stock markets will bottom.
But a ~20% decline in stocks is relatively rare and has
historically presented the best entry points for investors
with medium- to long-term time horizons. This cycle
should be no different.
In 2023, we believe equities are well positioned
to deliver positive returns. Any material decline
from current levels could represent a good buying
opportunity.
Turning first to the U.S. market, analysts do seem a
little too optimistic in projecting earnings growth of
nearly 7.5% for the S&P 500 in 2023. We are penciling in
flat-to-negative earnings growth in light of a weakening
economic backdrop.
But earnings expectations are just one part of the
equation. In the United States, as inflation subsides, the
tightening cycle nears its end and rates hit their ceiling,
we expect equity valuations to expand.
Together those two factors should deliver modest positive
returns for the S&P 500 next year. Clearly, taming inflation
is a prerequisite for stock market gains.
We could see some rotation in market sectors. Investors
may move back into interest rateâsensitive sectors (such
as real estate and reasonably priced technology) as bond
yields peak, and exit cyclical sectors that could be at risk
if markets price in greater risk of recession.
The picture is mixed across regions. Although current
valuations in Europe and China seem attractive, we think
U.S. dollarâbased investors should wait for a clearer
turn lower in the dollar and a turn higher in the global
manufacturing cycle before boosting their non-U.S. equity
exposures. We may get the chance, as the U.S. dollar looks
very stretched relative to historical valuations.
We believe equities
will deliver positive
total returns in 2023.
40
41. STRONGER MARKETS
Emerging markets outside of China could offer some
interesting trading opportunities. Brazilian equities
seem attractive on a valuation basis, and we like South
Koreaâs exposure to the semiconductor industry. Over the
longer term, structural trends such as food scarcity and
reliance on oil (despite progress toward the clean energy
transition) will likely offset idiosyncratic risks in regions
such as the Middle East and Latin America.
As the cycle progresses, we may find an opportunity
to add to most emerging markets in 2023.
On a regional basis, we prefer U.S. stocks, which
tend to be more insulated from global downturns.
On a sector level, we prefer healthcare. Revenues arenât
as cyclical as they are in other sectors, and valuations
seem reasonable. We also see opportunity in quality, cash
flowâgenerating tech and tech-related companies that
were hit by higher interest rates. Industrial companies
provide some inflation protection and benefit from the
tailwind of global infrastructure and defense investment.
Dividend growth and value companies could be well
positioned, given the uncertain macro environment and
higher interest rates.
A trend that we think will continue into 2023: Under-
performance of the mega-cap tech leaders of the last
cycle relative to the broad market.
We also think investors
should now consider small-
and mid-cap companies.
Generally, smaller companies tend to grow faster than large
caps, benefit from merger and acquisition activity, and could
be somewhat insulated from a more stringent regulatory
environment.
Valuations have fallen to recessionary levels and may
already reflect a material decline in earnings. During
recessions, small- and mid-cap companies only underperform
large-cap stocks by ~5%, and they outperform large-cap
stocks by 30% in the first year of the recovery. We think
the time to add is now.
As the year progresses, we will be on the lookout for other
dislocated pockets of the market.
41
42. Source: Bloomberg Finance L.P. Data as of November 4, 2022
MIDÂCAP EQUITY VALUATIONS TRADING NEAR TROUGH LEVELS
S&P 400 NTM P/E ratio
Source: FactSet, J.P. Morgan Private Bank. Data as of October 31, 2022.
CONSENSUS SEEMS TOO OPTIMISTIC ON EARNINGS GROWTH
2023 expected YoY change in EPS
STRONGER MARKETS
MID-CAP EQUITY VALUATIONS TRADING NEAR TROUGH LEVELS
S&P 400 NTM P/E ratio
10x
12x
14x
16x
18x
20x
22x
24x
+/Â 1 SD
Average
â95 â98 â01 â04 â07 â10 â13 â16 â19 â22
Source: Bloomberg Finance L.P. Data as of November 2022. Note: It is not possible to invest directly in an index.
CONSENSUS SEEMS TOO OPTIMISTIC ON EARNINGS GROWTH
2023 expected year-over-year change in earnings per share (EPS)
Consensus expectations
6%
2%
Â2%
Â6%
Â10%
5% J.P. Morgan Private Bank outlook
Â3%
Â8%
United States Europe
2%
Sources: FactSet, J.P. Morgan Private Bank. Data as of October 2022. Note: It is not possible to invest directly in an index.
42
44. STRONGER MARKETS
Once-booming private
markets have started to
feel the strain that is all but
inescapable in public markets.
Growth equity funds, real estate vehicles and private
credit managers have all experienced varying degrees
of markdowns on their assets, and more seem likely.
On the other hand, other alternative investments such
as hedge funds that focus on rates, currencies and
cross-asset correlations had a banner year and proved
their worth as portfolio diversifiers. In 2023, gold may
serve a similar purpose as the dollar and real interest
rates find their peaks.
More immediately, the drought of public capital market
activity in 2022 means that private market investors
can earn a premium for providing both debt and equity
financing. Companies that were planning on an initial
public offering in 2022 or 2023 are holding back, given
the valuation reset. Instead, many of these firms are
turning to private investors for bridge capital, and private
lenders can now demand higher interest rates from
potential borrowers.
Similarly, secondary private equity offerings, which
have historically demonstrated higher net IRRs (internal
rates of return) with more limited manager dispersion than
other types of private equity investments, could provide
an opportunity to acquire discounted assets from owners
who are willing to accept a markdown in exchange for
immediate liquidity.
Supply in this area has increased because some
institutional investors need to sell illiquid assets to
maintain their proper allocations, given the sell-off
in both stocks and bonds this year.
44
45. STRONGER MARKETS
Going forward,
we may also
see distressed
opportunities
in real estate
and credit as the
growth backdrop
deteriorates.
As we move into 2023 and beyond, we think there
will be a renewed focus on stability and security
across the global economy. The pandemic and
shifting geopolitical risks have raised acute issues
in areas such as supply chain resilience, access
to energy, food and other natural resources, and
traditional and digital security.
Real assets such as infrastructure, transportation
and the energy transition create a wide range of
possibilities for both public and private investors.
Many sectors, such as residential real estate
(U.S. housing stock has been underbuilt by ~1.5
million homes), shipping (there are only 111
active large shipyards today versus 320 in 2008),
and natural resources (large-cap energy capex
is down 60% since 2015) have seen a decade
of underinvestment that curtails capacity. The
investment shortfall presents opportunity for
both yield and total return, though cyclical risks
should be taken into account.
45
46. STRONGER MARKETS
Europe will likely need to redesign its energy
infrastructure and supply chain, which should
benefit not only natural gas producers and
transporters, but also accelerate the green
energy transition. Nuclear energy may even
start to become a more acceptable option.
Across the global economy,
critical infrastructure will
continue to provide investors
with steady income streams
under a wide variety of
macroeconomic conditions.
All in all, we rely on private investments to add
diversification benefits to portfolios, to target
market inefficiencies in opportunistic areas,
and to drive attractive returns relative to public
benchmarks. Our outlook for 2023 makes those
qualities even more valuable.
Europe
Will likely need to
redesign its energy
infrastructure and
supply chain.
Real Assets
Many sectors within
real assets have
seen a decade of
underinvestment.
46
48. CONCLUSION
2022 tested the resolve of many investors.
Equity markets experienced one of their worst
drawdowns on record. Bonds not only failed to
protect portfolios from the equity sell-off, but they
suffered their steepest losses in decades.
But better days lie ahead. We believe markets could
stabilize even as the economy worsens in 2023. The
global reset in valuations is presenting investors
with a broader range of viable options to help
achieve their goals.
Most importantly, we encourage you to focus on
your process: Define and revisit financial goals; then
design investment portfolios with the potential to
reach them.
Speak with your J.P. Morgan team to see how you
might turn that potential into your reality.
48
49. Our mission
The Global Investment Strategy Group
provides industry-leading insights and
investment advice to help our clients
achieve their long-term goals. They
draw on the extensive knowledge and
experience of the Groupâs economists,
investment strategists and asset-
class strategists to provide a unique
perspective across the global financial
markets.
49
50. CONCLUSION
EXECUTIVE SPONSOR
Clay Erwin
Global Head of Investments Sales & Trading
GLOBAL INVESTMENT STRATEGY GROUP
Tom Kennedy
Chief Investment Strategist
Elyse Ausenbaugh
Global Investment Strategist
Christopher Baggini
Global Head of Equity Strategy
Nur Cristiani
Head of LatAm Investment Strategy
Kristin Kallergis Rowland
Global Head of Alternative Investments
Jacob Manoukian
Head of U.S. Investment Strategy
Grace Peters
Head of EMEA Investment Strategy
Xavier Vegas
Global Head of Credit Strategy
Alex Wolf
Head of Asia Investment Strategy
50
51. IMPORTANT INFORMATION
Key Risks
Past performance is no guarantee of future results. It is not possible
to invest directly in an index. This material is for informational purposes
only, and may inform you of certain products and services offered by private
banking businesses of JPMorgan Chase & Co. (âJPMâ). Products and services
described, as well as associated fees, charges and interest rates, are subject
to change in accordance with the applicable account agreements and may
differ among geographic locations. Investing in fixed income products
is subject to certain risks, including interest rate, credit, inflation, call,
prepayment and reinvestment risk. Not all products and services are offered
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support accessing this material, please contact your J.P. Morgan team or
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all Important Information.
Alternative Investments
Investment in alternative investment strategies is speculative, often involves a
greater degree of risk than traditional investments including limited liquidity
and limited transparency, among other factors and should only be considered
by sophisticated investors with the financial capability to accept the loss of all
or part of the assets devoted to such strategies.
Bonds
Bonds are subject to interest rate risk, credit and default risk of the issuer.
Bond prices generally fall when interest rates rise.
Commodities
Investments in commodities may have greater volatility than investments
in traditional securities. The value of commodities may be affected by
changes in overall market movements, commodity index volatility, changes
in interest rates, or factors affecting a particular industry or commodity,
such as drought, floods, weather, livestock disease, embargoes, tariffs and
international economic, political and regulatory developments. Investing in
commodities creates an opportunity for increased return but, at the same
time, creates the possibility for greater loss.
Equities
The price of equity securities may rise or fall due to the changes in the broad
market or changes in a company's financial condition, sometimes rapidly or
unpredictably. Equity securities are subject to "stock market risk" meaning
that stock prices in general may decline over short or extended periods of
time. Preferred investments share characteristics of both stocks and bonds.
Preferred securities are typically long dated securities with call protection
that fall in between debt and equity in the capital structure. Preferred
securities carry various risks and considerations which include: concentration
risk; interest rate risk; lower credit ratings than individual bonds; a lower
claim to assets than a firm's individual bonds; higher yields due to these risk
characteristics; and âcallableâ implications meaning the issuing company may
redeem the stock at a certain price after a certain date. Small capitalization
companies typically carry more risk than well-established "blue-chip"
companies since smaller companies can carry a higher degree of market
volatility than most large cap and/or blue-chip companies. Investment in
alternative investment strategies is speculative, often involves a greater
degree of risk than traditional investments including limited liquidity and
limited transparency, among other factors and should only be considered by
sophisticated investors with the financial capability to accept the loss of all or
part of the assets devoted to such strategies.
Fixed Income
Investing in fixed income products is subject to certain risks, including interest
rate, credit, inflation, call, prepayment, and reinvestment risk.
Preferreds
Preferred investments share characteristics of both stocks and bonds.
Preferred securities are typically long dated securities with call protection
that fall in between debt and equity in the capital structure. Preferred
securities carry various risks and considerations which include: concentration
risk; interest rate risk; lower credit ratings than individual bonds; a lower
claim to assets than a firm's individual bonds; higher yields due to these risk
characteristics; and âcallableâ implications meaning the issuing company may
redeem the stock at a certain price after a certain date.
UNDERSTANDING LTCMAS
JPMAM Long-Term Capital Market Assumptions (LTCMAs): Given the complex
risk-reward trade-offs involved, we advise clients to rely on judgment as
well as quantitative optimization approaches in setting strategic allocations.
Please note that all information shown is based on qualitative analysis.
Exclusive reliance on the above is not advised. This information is not
intended as a recommendation to invest in any particular asset class or
strategy or as a promise of future performance. Note that these asset class
and strategy assumptions are passive only â they do not consider the impact
of active management. References to future returns are not promises or
even estimates of actual returns a client portfolio may achieve. Assumptions,
opinions and estimates are provided for illustrative purposes only. They
should not be relied upon as recommendations to buy or sell securities.
Forecasts of financial market trends that are based on current market
conditions constitute our judgment and are subject to change without notice.
We believe the information provided here is reliable, but do not warrant its
accuracy or completeness. This material has been prepared for information
purposes only and is not intended to provide, and should not be relied on for,
accounting,legalortaxadvice.Theoutputsoftheassumptionsareprovidedfor
illustration/discussion purposes only and are subject to significant limitations.
âExpectedâ or âalphaâ return estimates are subject to uncertainty and error.
For example, changes in the historical data from which it is estimated will
result in different implications for asset class returns. Expected returns for
each asset class are conditional on an economic scenario; actual returns in
the event the scenario comes to pass could be higher or lower, as they have
been in the past, so an investor should not expect to achieve returns similar
to the outputs shown herein. References to future returns for either asset
allocation strategies or asset classes are not promises of actual returns a
client portfolio may achieve. Because of the inherent limitations of all models,
potential investors should not rely exclusively on the model when making a
decision. The model cannot account for the impact that economic, market,
and other factors may have on the implementation and ongoing management
of an actual investment portfolio. Unlike actual portfolio outcomes, the model
outcomes do not reflect actual trading, liquidity constraints, fees, expenses,
taxes and other factors that could impact the future returns. The model
assumptions are passive only â they do not consider the impact of active
management. A managerâs ability to achieve similar outcomes is subject to
risk factors over which the manager may have no or limited control. The
views contained herein are not to be taken as advice or a recommendation
to buy or sell any investment in any jurisdiction, nor is it a commitment from
J.P. Morgan Asset Management or any of its subsidiaries to participate in any
of the transactions mentioned herein. Any forecasts, figures, opinions or
investment techniques and strategies set out are for information purposes
51
52. only, based on certain assumptions and current market conditions and are
subject to change without prior notice. All information presented herein is
considered to be accurate at the time of production. This material does not
contain sufficient information to support an investment decision and it should
not be relied upon by you in evaluating the merits of investing in any securities
or products. In addition, users should make an independent assessment of
the legal, regulatory, tax, credit and accounting implications and determine,
together with their own financial professional, if any investment mentioned
herein is believed to be appropriate to their personal goals. Investors should
ensure that they obtain all available relevant information before making any
investment. It should be noted that investment involves risks, the value of
investments and the income from them may fluctuate in accordance with
market conditions and taxation agreements and investors may not get back
the full amount invested. Both past performance and yield are not a reliable
indicator of current and future results.
General Risks & Considerations
Any views, strategies or products discussed in this material may not be
appropriate for all individuals and are subject to risks. Investors may get back
less than they invested, and past performance is not a reliable indicator of
future results. Asset allocation/diversification does not guarantee a profit or
protect against loss. Nothing in this material should be relied upon in isolation
for the purpose of making an investment decision. You are urged to consider
carefully whether the services, products, asset classes (e.g., equities, fixed
income, alternative investments, commodities, etc.) or strategies discussed
are suitable to your needs. You must also consider the objectives, risks,
charges, and expenses associated with an investment service, product or
strategy prior to making an investment decision. For this and more complete
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Morgan team.
Index Definitions
The Bloomberg Global Aggregate Index provides a broad-based measure
of the global investment grade fixed-rate debt markets. The Global
Aggregate Index contains three major components: the U.S. Aggregate
(USD 300mm), the Pan-European Aggregate (EUR 300mm), and the Asian-
Pacific Aggregate Index (JPY 35bn). In addition to securities from these
three benchmarks (94.1% of the overall Global Aggregate market value
as of December 31, 2009), the Global Aggregate Index includes Global
Treasury, Eurodollar (USD 300mm), Euro-Yen (JPY 25bn), Canadian (USD
300mm equivalent), and Investment Grade 144A (USD 300mm) index-
eligible securities not already in the three regional aggregate indices.
The Global Aggregate Index family includes a wide range of standard and
customized subindices by liquidity constraint, sector, quality and maturity.
A component of the Multiverse Index, the Global Aggregate Index was
created in 1999, with index history backfilled to January 1, 1990. All indices
are denominated in U.S. dollars.
The MSCI World Index is a free float-adjusted market capitalization-
weighted index that is designed to measure the equity market performance
of developed markets. The index consists of 23 developed market country
indexes.
The Standard and Poorâs 500 Index is a capitalization-weighted index of
500 stocks. The index is designed to measure performance of the broad
domestic economy through changes in the aggregate market value of 500
stocks representing all major industries. The index was developed with a base
level of 10 for the 1941â43 base period.
The Standard & Poorâs 400 Index provides investors with a benchmark for
mid-sized companies. The index, which is distinct from the large-cap S&P
500, is designed to measure the performance of 400 mid-sized companies,
reflecting the distinctive risk and return characteristics of this market
segment.
The STOXX Europe 600 Index (SXXP Index) is an index tracking 600 publicly
traded companies based in one of 18 EU countries. The index includes small
cap, medium-cap and large-cap companies. The countries represented in
the index are Austria, Belgium, Denmark, Finland, France, Germany, Greece,
Holland, Iceland, Ireland, Italy, Luxembourg, Norway, Portugal, Spain,
Sweden, Switzerland and the United Kingdom.
The MSCI Emerging Markets Index captures large- and mid-cap
representation across 23 emerging Markets (EM) countries. With 834
constituents, the index covers approximately 85% of the free float-adjusted
market capitalization in each country. EM countries include: Brazil, Chile,
China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia,
Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South
Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI China Index captures large- and mid-cap representation across
China H shares, B shares, Red chips and P chips. With 144 constituents,
the index covers about 85% of this China equity universe.
The CSI 300 is a capitalization-weighted stock market index designed to
replicate the performance of the top 300 stocks traded on the Shanghai
Stock Exchange and the Shenzhen Stock Exchange.
The CSI China Overseas Internet Index is designed to measure the
performance of the investable universe of publicly traded China-based
companies whose primary business or businesses are in the internet
and internet-related sectors.
Indices are not investment products and may not be considered for
investment.
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assumes no duty to update any information in this material in the event
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expressed herein may differ from those expressed by other areas of JPM,
views expressed for other purposes or in other contexts, and this material
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risks are based solely on hypothetical examples cited, and actual results
and risks will vary depending on specific circumstances. Forward-looking
statements should not be considered as guarantees or predictions of future
events.
52
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