From: To: Subject: Date: Attachments: Inline-Images: US GIG Undisclosed recipients:; JPMorgan View 01.27.2012 Fri, 27 Jan 2012 23:26:26 +0000 JPM_View_01.27.2012-pdizip intage0O3.png J.P. Morgan The J.P. Morgan View The rally is getting fundamental support • Aviel Allocation— Start switch from the to into EM • Economies — Suave P%Us create upside task an global glossa SW ruse 91 tone in the EuroArea. and 2012 front 0.3% o.0 4%.mth upside risk • Fixed Income —wk stay tactically prune on at prophesy • Equities — 11k teconimend a basket of high and sustainable thadend yield arks. the l.P. Morgan European Eustamabk Held Basket with an rimer Deld of 4 7% • Credit — CS H1' reMain3 our prefened trait. stay long • Foreign exchange — ilk mace defensive trade again and add another LISD short • Conutiorleles —Close long bend vs base metals wade. Ream long gold • %%Mk fOur and the rally m ask assets continues. earn as US equities are beaded for tau first tri weekly down of dr year Last week we saw that the rams wench had staled in equities. was pupate along mat. ronunodaties and EM CUrrenCitS This mown the case this week. and now ha-, widened further to the eumproptra But we are also grning fundamental support. with unproved economic data and central banks :mann even fur her easing ilk are flan truss challenged by overvaluance and baba pantos and thus feel condonable :Maing a ugnsficant long in ruk assets. Phlls remain our best forma looking indicators of economic runty. despite tad subpar performance as a global signal last )eat And it is the flash PhIls for Chula and Europe that am now indicating upside task on global forecasts for 91 In theism are. this has forced us already to Onus EI I from I Tr% to Bar winch fair: the 2012 popectal Isom -0 3% to 4% Mt eau next week's surreys on credit mothball to assess whether the moon imam: in a shallow recession. or is poi homong woad stagnation Equally Ulicertant are Signs dim central banks are