From: US GIO <MMIll=a>

From: US GIO <MMIll=a> To: Undisclosed recipients:; Subject: Eye on the Market, May 10, 2011: Snakes and Ladders Date: Wed, 11 May 2011 11:14:44 +0000 Attachments: 05-10-11_-_EOTM_-_Snakes_and_Ladders-pdfzip Eye on the Market, May 10, 2011 In a world awash with money and in which risky assets of all kinds are recovering, one category has been left out: sovereign debt issued by Greece, Portugal and Ireland. While these three countries only make up 5% of European GDP, European bank claims on these countries, including sovereign debt, bank exposure and reported derivatives, is roughly half a trillion Euros. Given European Tier 1 Bank Capital of roughly 1.3 trillion Euros, the resolution of the peripheral debt situation is a challenge for the region. This week, a Peripheral Debt board game to understand the financial, economic and political machinations in Europe: Snakes and Ladders. Michael Cembalest Chief Investment Officer The material contained herein is intended as a general market commentary. Opinions expressed herein are those of Michael Cembalest and may differ from those of other J.P. Morgan employees and affiliates. This information in no may constitutes J.P. Morgan research and. hould not be treated as. uch. Further: the views expressed herein may differ from that contained in J.P. Morgan research reports. The above summary/prices/quotes/statistics have been obtainer/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 JP 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 JP. Morgan Chase Bank NA, and its affiliates. Securities are offered through J.P. Morgan Securities LLC' (JPAIS), Member NYSE, FINRA and SIPC. Securities products purchased or sold through JPAIS are not insured by the Federal Deposit Insurance Corporation ("FDIC,: are not deposits or other obligations of its bank or thrift affiliates and are guaranteed by its bank or thrill affiliates: and are subject to investment risks, including passible loss of the principal invested. Not all investment ideas referenced are. uitable for all investors. Speak with your J.P. Afingan Representative concerning your personal situation. This material is not intended as an offer or solicitation for the purchase or sale ofany financial instrument. Private Investments may engage in leveraging and other speculative practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuations to investors and mar involve complex tax 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: JPAlorgan Chase & Co. and its affiliates do not provide tax 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 promotion. marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of amid* U.S. tax-related penalties. Note that J.P. Morgan is not a licensed insurance provider. C. 2011 JP.Worgan Chase & Co 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. EFTA01164569