- The document provides a weekly market recap for the week ending May 18, 2012. It includes headlines on events like Greece failing to form a government and unchanged FOMC guidance. Economic data like CPI and retail sales are also mentioned. - Index levels declined over the prior week. Bond rates were largely unchanged. Commodity prices like gold and oil declined slightly. - The author notes ongoing concerns about Europe and a potential hard landing in China, though the US economy appears stronger than China's currently. Overall US equities still appear attractive relative to valuations.

1. MARKET Weekly Market Recap
INSIGHTS May 21, 2012
Friday Prior Year Year Friday Prior Year Year
Close Week End Ago Close Week End Ago
Headlines Index Levels 5/18/12 5/11/12 12/30/11 5/18/11 Consumer Rates 5/18/12 5/11/12 12/30/11 5/18/11
• Greece was unable to form a coalition government. Dow Jones 30 12,369 12,821 12,218 12,560 6 Month CD 0.43 0.45 0.64 0.29
• The FOMC left forward guidance unchanged. S&P 500 1,295 1,353 1,258 1,341 30 Year Mortgage 3.96 4.01 4.07 4.60
Economic News Nasdaq 2,779 2,934 2,605 2,815 Prime Rate 3.25 3.25 3.25 3.25
• CPI: 2.30% y-o-y; Core CPI: 2.31% y-o-y. Russell 2000 747 790 741 833
Commodities
• Retail Sales rose less than expected. Bond Rates Gold 1589.50 1583.00 1531.00 1496.50
• Housing Starts beat consensus estimates. Fed Funds Target 0.25 0.25 0.25 0.25 Crude Oil 91.48 96.13 98.83 100.10
• Industrial Production was stronger than expected. 2 Year Treasury 0.29 0.26 0.24 0.56 Gasoline 3.75 3.79 3.26 3.96
• Next Week: New Home Sales, Durable Goods. 10 Year Treasury 1.70 1.84 1.87 3.17
10 Year Municipal 2.17 2.13 2.45 3.25 Currency
Thought of the Week $ per € 1.27 1.29 1.30 1.43
The situation in Europe remains unresolved and fears High Yield 7.57 7.02 8.36 6.68
$ per £ 1.58 1.61 1.55 1.61
over a hard landing in China continue to mount, which
¥ per $ 79.26 79.88 76.94 81.36
has driven investors out of stocks and in to bonds and 1 week YTD
cash. As shown in this week’s chart, China’s economic Market Returns Local USD Local USD Wgt Avg
data has weakened this year, and although they may be S&P 500 -4.23 -4.23 3.86 3.86 Index P/E P/E Dividend Mkt Cap
headed for a slowdown, it does not appear they are MSCI - EAFE -4.74 -5.90 -0.63 -1.91 Characteristics Forward Trailing Yield (Bill)
headed for a hard landing. On the other hand, U.S. United Kingdom -5.38 -7.08 -3.66 -2.01 S&P 500 11.87 14.70 2.31 103.30
economic data continues to improve, and to an extent it Europe ex-UK -4.56 -6.33 -0.67 -2.60 Russell 1000 Value 10.83 15.09 2.58 74.38
appears that the U.S. and China have “traded places”; Japan -4.26 -3.51 0.94 -2.02 Russell 1000 Growth 13.37 17.59 1.53 109.80
the pace of U.S. economic growth is accelerating, while Asia ex-Japan -4.71 -5.90 2.23 1.16 Russell 2000 16.04 24.55 1.43 1.26
the pace of China’s economic growth is slowing. Thus,
given a backdrop of a stronger U.S. economy and S&P 500 Sector Returns Style Returns Chart of the Week
attractive equity valuations, investors could benefit from V B G Trading Places: The U.S. and China
an investment in equities, or at least by taking YTD year-over-year % change
10 30%
advantage of this opportunity to ensure their portfolios L -4.3 -4.2 -4.7
Health Care
Technology
Industrials
Consumer
Consumer
Financials
U.S. China
Materials
S&P 500
are balanced.
Telecom
24.0%
Utilities
Staples
Energy
5
25%
Discr.
1 week
1 week
M -5.8 -6.0 -6.1
0
Question of the week: 20%
-0.3
-1.3
-1.4
Used vehicle prices increased 1.5% in April; when was S -5.0 -5.4 -5.8
-2.5
-5
15%
-4.2
-4.2
-4.6
the last time prices rose this much on a month-over-
-5.0
-5.0
11.2%
-6.5
-7.0
month basis? -10
8.2%
10% 8.1%
V B G 6.9%
Prior week's question:
8.8
8.2
8.2
10 5.1%
6.4
According to the JOLTS survey, how may job openings L 2.3 3.9 5.6 5%
4.7
Materials
4.0
3.9
Utilities
Energy
were there as of the end of March? 5
1.8
0%
YTD
Answer to prior week's question:
YTD
0 M 1.9 2.8 3.8
According to the JOLTS survey, there were 3.7 million
Telecom
Consumer
Discr.
Technology
Financials
Health Care
Consumer
Staples
Industrials
S&P 500
-1.8%
-0.5
-5%
-1.7
job openings in March, up significantly from a year -5 -4.2%
S 1.5 1.3 1.2
earlier. -10%
-6.9
-10
Housing Starts Exports Imports Vehicle Sales
Please see important disclosure on next page. Note: All returns represent total return including dividends.

2. MARKET Weekly Market Recap | May 21, 2012
INSIGHTS
Chart of the Week: Source: BEA, Census, 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: BEA, Census, 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: BLS, 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
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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
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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., May 2012.
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 May 18, 2012 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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