From: US GIO

From: US GIO To: Undisclosed recipients:; Subject: J.P. Morgan Eye on the Market 10/24/2011: EMU (dromaius novaehollandiae) Date: Mon, 24 Oct 2011 13:34:14 +0000 Attachments: 10-24-11_ EOTM_-_Emu jdromaius_novaehollandiae].pdf Eye on the Market, October 24, 2011 Topics: A biological look at the latest attempt to resolve the European Monetary Union debt crisis; US Q3 earnings The EMU (technical name: Economic and Moneiwy Union, common name: European Moneiwy Union) is beginning to bear more and more resemblance to its aviary twin: the flightless, awkward, and bumbling emu (dromaius novaehollandiae). Europe's long-awaited sovereign and bank bailout package will soon attempt liftoff; we will know more after yet another summit on Wednesday. Why is this so important? Bank recaps in Sweden ('92), the US ('92, '08), Japan ('99) and Asia ('98) were close to marking the bottom of the equity market cycle....but were not designed using the equivalent of the "Goal Seek" function in Microsoft Excel. See attached PDF for details on what may weigh the emu bailout down. Also, an update on US corporate profits, which will hit a new all-time high in Q3; and a bucket of cold water from the Chairman of the Board of Supervisors of China Investment Corporation. Michael Cembalest Chief Investment Officer The material contained herein is intended as a general market commentary Opinions expressed herein are thaw of Michael Cembalest and may differ from those of other J.P. Morgan employees and affiliates. This information in no way constitutes J.P. Morgan research and. hould not be treated as such. Further, the views expressed herein may differ limn that contained in J.P. Morgan research reports. The above summarylprices/quotesistatistics have been obtained from sources deemed to be reliable, but we do not guarantee their accuracy or completeness, any yield referenced is indicative and subject to change. Past performance is not a guarantee of future results. References to the performance or character of our portfolios generally refer to our Balanced Model Portfolios constructed by-IP. Morgan. It is a proxy for client performance and may not represent actual transactions or investments in client accounts. The model portfolio can be implemented across brokerage or managed accounts depending on the unique objectives of each client and is serviced through distinct legal entities licensed for specific activities. Bank trust and investment management services are provided by J.P. Morgan Chase Bank, NA, and its affiliates. Securities are offered through J.P. Morgan Securities LLC (JPAISI, Member NYSE, FINRA and SIPC and Chase Investment Services Corp.. (CISC) member FINRA and SIPC Securities products purchased or sold through JPMS or CISC are not insured by the Federal Deposit Insurance Corporation ("FDIC": are not deposits or other obligations of its bank or thrift affiliates and are not guaranteed by its bank or thrift affiliates; and are subject to investment risks, including possible loss of the principal invested. Not all investment ideas referenced are suitable for all investors. Speak with your J.P. Morgan Representatiw oonceming your personal situation. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Private Investments may engage in leveraging and other. peculative practices that may increase the risk of inwsurrent loss, can be highly illiquid, are not required to provide periodic pricing or valuations to investors and may involve complex tar structures and delays in distributing important tax information. Thpically such investment ideas can only be offered to suitable investors through a confidential offering memorandum which fully describes all terms, conditions, and risks. IRS Circular 230 Disclosure: JPAimgan Chase & Co. and its affiliates do not provide tar advice. Accordingly any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used. and cannot be used, in connection with the premation. marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. Note that J.P. Morgan is not a licensed insurance provider: JPMorgan Chase & Co: All rights reserved This email is confidential and subject to important disclaimers and conditions including on offers for the purchase or sale of securities, accuracy and completeness of information, viruses, confidentiality, legal privilege, and legal entity disclaimers, available at http://wwwjpmorgan.corn/pages/disclosures/email. EFTA00687648