Portfolio Management

Market turbulence: What does it really mean for investors?

Fundamentals are strong and central banks should tame inflation—without tipping us into recession. That said, risks abound.

Market turbulence: What does it really mean for investors?

  • There is a low chance the U.S. economy falls into recession this year. With the Fed raising rates, the key question is whether central banks are choosing to prioritize inflation above growth.
  • Are Europe and the U.S. moving a little closer to recession? Yes. But a recession is always possible. The key is whether it’s probable.
  • We’re stuck in a game of ‘how high can we go’ with interest rates. Where bond prices lead, equities follow. Short-term, that’s effectively meant stocks and bonds are behaving like risk assets.
  • As markets begin to feel monetary policy is in fact stymying the pace of rising inflation, investors will pivot to refocus on the fundamental outlook and valuations. It’s going to take time for that to happen. 

Macro costs and market backdrafts. We came into this year with expectations that while slowing, growth would continue at an above trend pace. That remains the case, but inflation is leaning heavily on the outlook. The inflation roar we’re seeing is exacerbated by war in Ukraine and by China’s zero-Covid policy involving lockdowns, which is weighing on Chinese growth and the global supply chain.

The war in Ukraine isn’t something investors should look past quickly. It’s a humanitarian crisis. It’s also a national security priority. No one knows how Russia’s war will play out. The same can be said for the macro costs and market backdrafts. It’s important to recognize what we can’t know.

We’re constructive but cautious on the outlook for growth, labor markets, spending, earnings, buy-backs and corporate default risk. Runaway inflation will gradually be tamed by central banks. It’s not if, but when … and how. More on the ‘how’ a bit later. Factory output is rising, inventories are lean and being rebuilt. We continue to see a gradual and healthy rotation from goods to service sector spending.

M&A activity is robust, as are corporate investment and capex. In the U.S., we are back to pre-pandemic savings rates (Figure 1). There is well in excess of $2 trillion in savings on personal balance sheets because of pandemic driven government stimulus. That’s a positive as it relates to both economic normalization and consumption in the face of higher prices.

U.S. savings rate back to pre-pandemic levels

Source: BEA, Haver Analytics. Data as of March 2022.
Line chart of U.S. personal savings rate with monthly data points displayed on the y-axis in percentage terms and shown since 2010 through March 2022 on the x-axis. More specifically, the data represents personal savings as a percentage of disposable income. In the few years leading up to the global pandemic starting in 2020, personal savings rate roughly hovered around 6-8%. However, with the pandemic a marked increase took place with this measure reaching a high of almost 34% in early 2020. Since then, however, while volatile the savings rate has declined to 6.2% most recently, which is in line with the pre-pandemic experience in this regard.

Investors are pricing in rising uncertainty. Tail risks are pronounced and binary. You can clearly see that in daily market volatility. Fear sells better than greed in the current market environment. Lower-lows and lower-highs across markets have put the burden of proof on bulls, both in equity and bond markets. So far, the market behavior we’ve seen rhymes more with the late 2018 growth scare, not a full-blown recession. That doesn’t mean we can’t get there.

Inflation above growth? I think there is a low chance the U.S. economy falls into recession this year, even with a more hawkish tone from developed market central banks. With the Federal Reserve (Fed) at the front of the pack with regard to tightening, the key question for investors is whether central banks are choosing to prioritize inflation above growth. Today, the answer is no. They need to tame inflation and not ‘break’ growth.

We know the global economy is slowing from an above-trend pace. Also, that inflation is a problem. The interplay between monetary policy and markets is incredibly challenging. Inflation will continue to be watched carefully. While we believe the pace of inflation is topping out, we’re not going to know for certain for another few quarters. That will continue to frustrate investors, adding to uncertainty.

Are Europe and the U.S. economies moving a little closer to recession? Yes. But a recession is always possible. That’s how a cycle ends. The important question to ask: is a U.S. recession imminent and probable? No, but the risks are higher than they were in March. Neither the U.S. nor Europe is poised to fall into deep recession in 2022. That said, the outlook for Europe is more challenging because of the ongoing war in Ukraine.

Markets are pricing in an aggressive tightening cycle from both the Fed and the European Central Bank (ECB) this year. The ECB hasn’t raised policy rates in over a decade. The Fed just raised policy rates by 50bps. That’s the first time we’ve seen a hike that large in over two decades.

Investors are taking a ‘rip the Band-Aid off’ approach to monetary policy. They’re doing the heavy market lifting for policymakers. Ultimately, that should be seen as good news for markets as well as sentiment. Between now and then, we have more air pockets to get through.

The bond vigilantes have returned to challenge the Fed and the ECB. They’re effectively putting fixed income markets in ‘price discovery’ mode. That means rates will stay volatile, prone to overshooting to the upside. We’re stuck in a game of ‘how high can we go’ with interest rates. Where bond prices lead, equities follow. Short-term, that’s effectively made stocks and bonds behave like risk assets.

We’re seeing signs that inflation is beginning to plateau. That’s supportive of our view and portfolio positioning. We have a long way to go before inflation moves markedly lower (Figure 2). But slower inflation will help calm jitters. Investors need to see policymakers, starting with the Fed, quickly regain control. That’s the message the Fed continues to deliver. Do more now, to be able to do less ahead. Getting there is going to be an artful balancing act.

Inflation remains elevated

Source: National agencies, Haver Analytics. As of April 2022 (U.S.) or March 2022 (Euro area).
Line chart of U.S. and Euro area inflation as measured by their respective core consumer price indices (CPI) shown on a year-over-year (yoy) percentage change basis (y-axis); through April 2022 for the U.S. and March 2022 for the Euro area. Monthly data points are displayed since 2019 (x-axis). Prior to 2021, inflation as shown was hovering around or below 2%; but starting in 2021 to date, a marked increase occurred across the board relative to the couple of years prior, with U.S. core inflation increasing the most to slightly above 6% -- and the Euro area increasing to slightly above 3%. However, the pace of yoy inflation has decelerated on the margin as it relates to the most recent data points experienced in the U.S., specifically.

A bumpy ride to a soft landing? A lot of bad news is priced into markets. Today, when stocks rally investors feel under risked. And when they fall, investors feel recession is close at hand. That emotional asymmetry is weighing on sentiment.

Investor sentiment has weakened markedly across multiple indicators. That’s a sign markets are nearing emotional exhaustion. It will ultimately be constructive for risk assets. We’re not there yet. Capitulation happens in waves; it’s a process not an event.

Valuations across risk assets have repriced lower, reflecting higher rates and greater uncertainty. But cheaper isn’t cheap. That’s an observation about lower returns ahead, not an outright bearish comment. It’s also a remark to anticipate current levels of market volatility to be with us for longer than most investors want or expect.

The success of the balancing act around central bank tightening is dependent on policymakers not over-shooting on policy rates. Central banks will continue to be challenged by investors along the way, starting with Fed in pole position. That said, market balance is also dependent on the strength of earnings.

Investors have significantly discounted equity valuations from where we started the year. Some of that is coming from rising inflation and policy rates. Some relates to concerns about operating leverage ahead and, by extension, earnings growth. Pre-Covid, net income margins ran around 11-12% for the S&P 500. They rose to around 13.5% in 2021 (Figure 3). I expect we’ll see margins work their way back to pre-Covid levels over the next year.

Margins are well supported

Source: Factset. Data as of March 2022. Past performance is not a guarantee of future results. It is not possible to invest directly in an index.  
Line chart of S&P 500, MSCI Europe and MSCI Japan trailing twelve month net income margins time series shown in percentage terms on the y-axis and displayed on a quarterly basis since 2002 through Q1 2022 on the x-axis. While divergent in level terms with the S&P 500 highest at around 13.5% and Japan lowest at below 7%, all regions show significant margin growth from 2020 levels, most notably in Europe which increased by over 5% to almost 11%. The chart denotes that past performance is not indicative of future returns, and that it is not possible to invest in an index.

Revenue and earnings growth for the first-quarter came in strong, both in the U.S. and Europe. While company guidance is cautious, we continue to expect mid-to-high single digit revenue growth this year and next. While those levels of top-line growth may seem aspirational, they’re not.

We expect economic growth this year to be above trend and move back to more normal levels next year. The risk to that view skews down, not up. I’m anchoring on an inflation rate of around 3-plus percent in the U.S. and Europe over the next 12 months. Nominal growth will likely run in mid-single digits. All of a sudden, revenue growth of mid-to-high single digits doesn’t seem a stretch. Earnings will depend on margins. So far, they’re holding in and healthy.

Analysts are forecasting $1-trillion of buybacks this year in the U.S. M&A activity globally is robust. There is a great deal of fundamental and technical support for the equity market as we look into next year. Those observations inform and support our equity positioning.

Both corporate and individual balance sheets are strong. Individuals and companies continue to sit on a tremendous amount of cash. Companies, in general, have refinanced and extended debt maturities at incredibly low interest rates. The affordability of existing debt stock today isn’t a concern. It may become an issue next year.

Both stocks and bonds have seen substantial drawdowns this year. High correlation between stocks and bonds can happen when central banks aggressively tighten policy rates. That’s the moment we’re in. Investors haven’t seen a cycle like this in a very long time. Some have never seen it.

An overweight to stocks versus bonds may seem counterintuitive in the current market environment. We are underweight core bonds and duration because we expect interest rates to press higher. We are overweight stocks because we see greater upside versus bonds over the next year. As interest rates move higher, we’ll continue to revisit our fixed income positioning. The higher rates go, the more attractive bonds become. That includes credit markets.

As markets begin to feel comfortable that monetary policy is in fact stymying the pace of rising inflation, investors will pivot to refocus again on the fundamental outlook and valuations. It’s going to take time for that to happen. In the interim, I expect markets to remain volatile. Investors have a recency bias, expecting markets to quickly bounce back. They will, but not quickly. High volatility will continue to weigh on investor emotion.

Markets today feel like a virtual game of ping-pong. It’s important to remember that markets do this on occasion. We are repricing the risk free rate, policy rates. That has thrown broad markets into a period of high volatility. As long-term investors, we are keeping a close eye on both tactical investment opportunities and the horizon.

For money being managed with a long-term horizon, the best strategy is to stick with it. Individuals tend to blink at the worst moments, selling low and buying high. Staying invested is the key to successful long-term investing. I know it’s a cliché. But it’s something worth repeating as it can quickly be forgotten in more extreme market moments. Think back to the first-quarter of 2020. We’ll get through this.

There is a lot of noise and uncertainty embedded in the macro data and swirling investor sentiment. Neither will be resolved soon. Risk assets are stuck in a very broad trading range. We have a few months ahead of us that are going to look and feel the same. There isn’t an obvious catalyst short-term to change this. We’re on a very bumpy ride to what we believe will be a ‘softish’ landing. Steady hands prevail.

INDEX DEFINITIONS

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.

The MSCI Europe Index captures large and mid cap representation across 15 Developed Markets (DM) countries in Europe. With 429 constituents as of April 2022, the index covers approximately 85% of the free float-adjusted market capitalization across the European Developed Markets equity universe.

The MSCI Japan Index is designed to measure the performance of the large and mid cap segments of the Japanese market. With 260 constituents as of April 2022, the index covers approximately 85% of the free float-adjusted market capitalization in Japan.

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you. 

*Required Fields

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you. 

Enter your First Name

> or < are not allowed

Only 40 characters allowed

Enter your Last Name

> or < are not allowed

Only 40 characters allowed

Select your country of residence

Enter valid street address

> or < are not allowed

Only 150 characters allowed

Enter your city

> or < are not allowed

Only 35 characters allowed

Select your state

> or < are not allowed

Enter your ZIP code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Enter your postal code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Enter your phone number

Tell Us More About You

0/1000

Only 1000 characters allowed

Checkbox is not selected

Your Recent History

Important Information

This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses of JPMorgan Chase & Co. (“JPM”). 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. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

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 information, including discussion of your goals/situation, contact your J.P. Morgan team.

NON-RELIANCE.

Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and 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. Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Conflicts of interest will arise whenever JPMorgan Chase Bank, N.A. or any of its affiliates (together, “J.P. Morgan”) have an actual or perceived economic or other incentive in its management of our clients’ portfolios to act in a way that benefits J.P. Morgan. Conflicts will result, for example (to the extent the following activities are permitted in your account): (1) when J.P. Morgan invests in an investment product, such as a mutual fund, structured product, separately managed account or hedge fund issued or managed by JPMorgan Chase Bank, N.A. or an affiliate, such as J.P. Morgan Investment Management Inc.; (2) when a J.P. Morgan entity obtains services, including trade execution and trade clearing, from an affiliate; (3) when J.P. Morgan receives payment as a result of purchasing an investment product for a client’s account; or (4) when J.P. Morgan receives payment for providing services (including shareholder servicing, recordkeeping or custody) with respect to investment products purchased for a client’s portfolio. Other conflicts will result because of relationships that J.P. Morgan has with other clients or when J.P. Morgan acts for its own account.
Investment strategies are selected from both J.P. Morgan and third-party asset managers and are subject to a review process by our manager research teams. From this pool of strategies, our portfolio construction teams select those strategies we believe fit our asset allocation goals and forward looking views in order to meet the portfolio's investment objective.
As a general matter, we prefer J.P. Morgan managed strategies. We expect the proportion of J.P. Morgan managed strategies will be high (in fact, up to 100 percent) in strategies such as, for example, cash and high-quality fixed income, subject to applicable law and any account-specific considerations.
While our internally managed strategies generally align well with our forward-looking views, and we are familiar with the investment processes as well as the risk and compliance philosophy of the firm, it is important to note that J.P. Morgan receives more overall fees when internally managed strategies are included. We offer the option of choosing to exclude J.P. Morgan managed strategies (other than cash and liquidity products) in certain portfolios.

The Six Circles Funds are U.S.-registered mutual funds managed by J.P. Morgan and sub-advised by third parties. Although considered internally managed strategies, JPMC does not retain a fee for fund management or other fund services.

In the United States, bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank managed investment accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC (“JPMS”), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPM. Products not available in all states.

In Germany, this material is issued by J.P. Morgan SE, with its registered office at Taunustor 1 (TaunusTurm), 60310 Frankfurt am Main, Germany, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB). In Luxembourg, this material is issued by J.P. Morgan SE – Luxembourg Branch, with registered office at European Bank and Business Centre, 6 route de Treves, L-2633, Senningerberg, Luxembourg, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Luxembourg Branch is also supervised by the Commission de Surveillance du Secteur Financier (CSSF); registered under R.C.S Luxembourg B255938. In the United Kingdom, this material is issued by J.P. Morgan SE – London Branch, registered office at 25 Bank Street, Canary Wharf, London E14 5JP, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – London Branch is also supervised by the Financial Conduct Authority and Prudential Regulation Authority. In Spain, this material is distributed by J.P. Morgan SE, Sucursal en España, with registered office at Paseo de la Castellana, 31, 28046 Madrid, Spain, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE, Sucursal en España is also supervised by the Spanish Securities Market Commission (CNMV); registered with Bank of Spain as a branch of J.P. Morgan SE under code 1567. In Italy, this material is distributed by J.P. Morgan SE – Milan Branch, with its registered office at Via Cordusio, n.3, Milan 20123, Italy, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Milan Branch is also supervised by Bank of Italy and the Commissione Nazionale per le Società e la Borsa (CONSOB); registered with Bank of Italy as a branch of J.P. Morgan SE under code 8076; Milan Chamber of Commerce Registered Number: REA MI 2536325. In the Netherlands, this material is distributed by J.P. Morgan SE – Amsterdam Branch, with registered office at World Trade Centre, Tower B, Strawinskylaan 1135, 1077 XX, Amsterdam, The Netherlands, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Amsterdam Branch is also supervised by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM) in the Netherlands. Registered with the Kamer van Koophandel as a branch of J.P. Morgan SE under registration number 72610220. In Denmark, this material is distributed by J.P. Morgan SE – Copenhagen Branch, filial af J.P. Morgan SE, Tyskland, with registered office at Kalvebod Brygge 39-41, 1560 København V, Denmark, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Copenhagen Branch, filial af J.P. Morgan SE, Tyskland is also supervised by Finanstilsynet (Danish FSA) and is registered with Finanstilsynet as a branch of J.P. Morgan SE under code 29010. In Sweden, this material is distributed by J.P. Morgan SE – Stockholm Bankfilial, with registered office at Hamngatan 15, Stockholm, 11147, Sweden, authorized by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and jointly supervised by the BaFin, the German Central Bank (Deutsche Bundesbank) and the European Central Bank (ECB); J.P. Morgan SE – Stockholm Bankfilial is also supervised by Finansinspektionen (Swedish FSA); registered with Finansinspektionen as a branch of J.P. Morgan SE. In France, this material is distributed by JPMCB, Paris branch, which is regulated by the French banking authorities Autorité de Contrôle Prudentiel et de Résolution and Autorité des Marchés Financiers. In Switzerland, this material is distributed by J.P. Morgan (Suisse) SA, with registered address at rue de la Confédération, 8, 1211, Geneva, Switzerland, which is authorised and supervised by the Swiss Financial Market Supervisory Authority (FINMA), as a bank and a securities dealer in Switzerland. Please consult the following link to obtain information regarding J.P. Morgan’s EMEA data protection policy: https://www.jpmorgan.com/privacy.

This communication is an advertisement for the purposes of the Markets in Financial Instruments Directive (MIFID II) and the Swiss Financial Services Act (FINSA). Investors should not subscribe for or purchase any financial instruments referred to in this advertisement except on the basis of information contained in any applicable legal documentation, which is or shall be made available in the relevant jurisdictions (as required).

In Hong Kong, this material is distributed by JPMCB, Hong Kong branch. JPMCB, Hong Kong branch is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong, we will cease to use your personal data for our marketing purposes without charge if you so request. In Singapore, this material is distributed by JPMCB, Singapore branch. JPMCB, Singapore branch is regulated by the Monetary Authority of Singapore. Dealing and advisory services and discretionary investment management services are provided to you by JPMCB, Hong Kong/Singapore branch (as notified to you). Banking and custody services are provided to you by JPMCB Singapore Branch. The contents of this document have not been reviewed by any regulatory authority in Hong Kong, Singapore or any other jurisdictions. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. For materials which constitute product advertisement under the Securities and Futures Act and the Financial Advisers Act, this advertisement has not been reviewed by the Monetary Authority of Singapore. JPMorgan Chase Bank, N.A., a national banking association chartered under the laws of the United States, and as a body corporate, its shareholder’s liability is limited.

With respect to countries in Latin America, the distribution of this material may be restricted in certain jurisdictions. We may offer and/or sell to you securities or other financial instruments which may not be registered under, and are not the subject of a public offering under, the securities or other financial regulatory laws of your home country. Such securities or instruments are offered and/or sold to you on a private basis only. Any communication by us to you regarding such securities or instruments, including without limitation the delivery of a prospectus, term sheet or other offering document, is not intended by us as an offer to sell or a solicitation of an offer to buy any securities or instruments in any jurisdiction in which such an offer or a solicitation is unlawful. Furthermore, such securities or instruments may be subject to certain regulatory and/or contractual restrictions on subsequent transfer by you, and you are solely responsible for ascertaining and complying with such restrictions. To the extent this content makes reference to a fund, the Fund may not be publicly offered in any Latin American country, without previous registration of such fund´s securities in compliance with the laws of the corresponding jurisdiction. Public offering of any security, including the shares of the Fund, without previous registration at Brazilian Securities and Exchange Commission–CVM is completely prohibited. Some products or services contained in the materials might not be currently provided by the Brazilian and Mexican platforms.

References to “J.P. Morgan” are to JPM, its subsidiaries and affiliates worldwide. “J.P. Morgan Private Bank” is the brand name for the private banking business conducted by JPM. This material is intended for your personal use and should not be circulated to or used by any other person, or duplicated for non-personal use, without our permission. If you have any questions or no longer wish to receive these communications, please contact your J.P. Morgan team. 

JPMorgan Chase Bank, N.A. (JPMCBNA) (ABN 43 074 112 011/AFS Licence No: 238367) is regulated by the Australian Securities and Investment Commission and the Australian Prudential Regulation Authority. Material provided by JPMCBNA in Australia is to “wholesale clients” only. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Corporations Act 2001 (Cth). Please inform us if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

JPMS is a registered foreign company (overseas) (ARBN 109293610) incorporated in Delaware, U.S.A. Under Australian financial services licensing requirements, carrying on a financial services business in Australia requires a financial service provider, such as J.P. Morgan Securities LLC (JPMS), to hold an Australian Financial Services Licence (AFSL), unless an exemption applies. JPMS is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) (Act) in respect of financial services it provides to you, and is regulated by the SEC, FINRA and CFTC under US laws, which differ from Australian laws. Material provided by JPMS in Australia is to “wholesale clients” only. The information provided in this material is not intended to be, and must not be, distributed or passed on, directly or indirectly, to any other class of persons in Australia. For the purposes of this paragraph the term “wholesale client” has the meaning given in section 761G of the Act. Please inform us immediately if you are not a Wholesale Client now or if you cease to be a Wholesale Client at any time in the future.

This material has not been prepared specifically for Australian investors. It:

  • may contain references to dollar amounts which are not Australian dollars;
  • may contain financial information which is not prepared in accordance with Australian law or practices;
  • may not address risks associated with investment in foreign currency denominated investments; and
  • does not address Australian tax issues.

© 2022 JPMorgan Chase & Co. All rights reserved.

LEARN MORE About Our Firm and Investment Professionals Through FINRA Brokercheck

To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products

 

JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states. Please read the Legal Disclaimer in conjunction with these pages.

INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED

Equal Housing Lender Icon Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Not a commitment to lend. All extensions of credit are subject to credit approval.