Investment Strategy

What impact might the Russian invasion have on markets?

We’re assessing sanctions, energy prices and the price action to determine what the conflict might mean for investors.

Our Top Market Takeaways for February 25, 2022.

Markets in a minute

This week, Russian forces invaded Ukraine: the largest military campaign in Europe since World War II. Western officials have been warning of a violent conflict for weeks, but it is still shocking to see such a humanitarian tragedy unfold in real time. The geopolitical ramifications of the invasion are important, and will likely not be fully understood for years, if not decades. Our thoughts are with all of those who are impacted, especially our colleagues, clients and their families.  
 

As investors, our job is to assess what impact the conflict might have on the global economy and financial markets, and then determine if we need to change the advice we are giving about portfolios. To do that, we are watching three areas: the extent of the sanctions placed against Russian entities, the impact on global energy prices, and the follow-through to price action. 

1. President Biden along with a number of European countries promised tough sanctions against Russia if it invaded Ukraine, but the market seems to think they are less onerous than expected. Yesterday afternoon, President Biden announced measures that would severely limit Russian banks’ ability to transact in dollars, euros and yen, sanctions on Russian elites and their families, and export controls that are meant to block Russia from receiving semiconductors and other technology. While the measures do alienate the Russian economy, they stopped short of blocking Russian energy exports or cutting them out of the SWIFT communication system that enables cross-border banking transactions. While Biden was announcing the sanctions, the Russian ruble strengthened by over 3% against the dollar, crude oil fell by about 4.5%, and U.S. equities surged by over 1.5%. It seems like the sanctions are designed to limit the amount of economic harm to Europe and the United States, which markets seem to like.

2. The clearest economic and market risk of this conflict is that it catalyzes an energy price shock and a period of stagflation. A scenario like this would resemble the aftermath of the Yom Kippur War in 1973, when the Organization of Arab Petroleum Exporting Countries cut off oil exports to the United States. In that event, the S&P 500 fell by ~40% and didn’t fully recover until 1980. Given that Russia produces ~12% of the world’s oil and ~17% of natural gas, that risk may seem high. In the end, that risk is real, and it is a much greater possibility for Europe than the United States. As our Chairman of Market and Investment Strategy Michael Cembalest noted, 40% of Europe’s natural gas and 27% of its oil come from Russia, and 30% of that energy is transported through Ukrainian territory. The United States, on the other hand, imports just 1%–3% of its oil and gas from Russia.

There are some important caveats. First, it seems like energy was very intentionally left out of the sanctions package by both European and U.S. policymakers because of this very risk. Indeed, Russian gas flowing through Ukraine has (according to Ukraine’s network operator) recovered almost to “normal” pre-conflict levels, and European natural gas prices are still high, but have fallen 25% from yesterday’s peak.   

For the United States, the economy is much less reliant on energy than it was in the 1970s. Then, it took about 100 barrels of oil to generate every unit of GDP. Today, it takes less than 40 barrels. Finally, it would take quite an energy price shock to pinch U.S. consumers. Right now, the average production and non-supervisory worker in America makes $26.92 per hour. This means they can buy 7.9 gallons of gas at current prices for every hour they work, just a touch below the average of the last 30 or so years. In 2013, the average worker could only buy around 5 gallons of gas for every hour worked. To get back to that ratio, gas would have to move up to ~$5.38 per gallon, or ~50% higher than current levels. 

This chart shows the gallons of gas per hour worked, from April 1993 to January 2022. The first data point came in at 10.2 gallons of gas per hour worked in April 1993. Here, it rose to 11.2 in January 1994 before declining to 9 in May 1996. Then it rose to an all-time high of 13.8 in February 1999. From there, it drastically declined to 8.4 before rising to 9.9 in March 2001. Here, it declined to 8.3 before rising to a relative peak of 13.1 in December 2001. From there, it dropped to 8.8 in March 2003 before declining once more to 7.7 in May 2004. Then it rose a bit to 8.5 in March 2005 before declining to 5.5 in September 2005. Here, it rose to 7.4 in February 2007 before declining to an all-time low of 4.4 in July 2008. Then it rose to 10.5 in December 2008 before dropping again to 4.9 in May 2011. From there, it rose to 6.1 before declining once more to 5.5 in June 2014. From here, it rose to a relative peak of 9.4 in January 2015 before dropping to 7.3 in July 2015. Here, it rose to 11.4 in February 2016. Then it gradually declined to 7.6 by May 2018. Here, it quickly rose to 9.9 in January 2019 before settling down at 7.9 by May 2019. Then it rose to 12.7 in April 2020. Here, it declined to 7.6 in November 2021 before settling at 7.9 in January 2022. Additionally, the graph shows the average of the gallons of gas per hour worked of 8.5.
3. The uncertainty around Russia and Ukraine has been building for weeks. Risk markets suffered as they wondered if Putin would order a full-scale invasion. From February 11, when President Biden warned that a Russian invasion was imminent, to the lows yesterday morning, the S&P 500 lost 10%, the NASDAQ 100 lost over 11.5%, and the ARKK Innovation ETF (a proxy for speculative, young, unprofitable companies) lost over 24.5%. Yesterday, as investors digested the reality of war and the initial sanctions, the S&P 500 gained almost 4.5% from its lows, the NASDAQ 100 rallied over 7%, and the ARKK ETF finished almost 8.5% higher. Conversely, the global energy sector peaked on February 11, and is now down over 5.5% since. A full-scale invasion of Ukraine is a bad outcome, but the questions that investors had to ask have now been answered more clearly. With that context, it makes a little more sense why U.S. equity markets performed so well yesterday.
 
So what should investors do? The first thing to do is remember that staying invested in a diversified, goals-aligned portfolio has paid off through countless geopolitical crises, wars, pandemics and recessions, and will likely continue to do so. This is also not the first time Russia has been the catalyst for market turbulence. Going back to the Soviet invasion of Afghanistan, we identified six instances of Russian aggression. In all but the 2008 invasion of Georgia, which occurred during the Global Financial Crisis, stock markets showed healthy gains both 6 and 12 months later.     
This chart shows six geopolitical events and the S&P 500 during the “reaction dates,” the performance from the start to one month later, three months later, six months later, and one year later. The USSR in Afghanistan happened between 12/24/1979 and 1/3/1980. The S&P 500 lost -2.27% during that time. One month later, it gained 5.61%, three months later -7.78%, six months later 6.95%, and one year later 26.21%. The Gorbachev Coup happened between 8/16/1991 and 8/19/1991. The S&P 500 returned -2.36%, one month later 0.05%, three months later -0.77%, six months later 6.98%, and one year later 8.90%. The Russian-Chechen War was from 10/11/1994 to 12/20/1994. The S&P 500 lost -1.87%. One month later, it lost -0.74%, three months later -0.89%, six months later, it gained 8.53%, and one year later 24.40%. The Russian Financial Crisis was from 8/18/1998 to 10/8/1998. The S&P 500 returned -12.87%. One month later, it lost -7.37%, three months later, it gained 3.93%, six months later 12.36%, and one year later 21.04%. Russia invaded Georgia from 8/8/2008 to 8/16/2008. The S&P 500 gained 0.15%. One month later, it lost -2.20%, three months later -28.18%, six months later -32.99%, and one year later -22.05%. Finally, Russia invaded Crimea from 2/20/2014 to 3/14/2014. The S&P 500 gained 0.36%. One month later, it gained 1.75%, three months later 1.80%, six months later 7.90%, and one year later 14.70%. The average S&P 500 performance over the reaction dates was -3.14%. The average one month later was -0.48%. The average three months later was -5.32%. The average six months later was -1.62%. The average one year later was up 12.20%. The average, not including the 2008 Financial Crisis for the same time periods, is as follows: -3.80%, -0.14%, -0.74%, 8.54% and 19.05%.

In the past, we have noted that most geopolitical shocks turn out to be decent buying opportunities, but we would caution that there are many outstanding questions still to be answered. What is Putin’s endgame? Is it just installing a friendly regime in Kyiv? Or is it continued aggression against other countries? Will more onerous energy embargoes eventually come in to play? Does this embolden China to make a play for Taiwan?  

When uncertainty is high, it helps to focus on the fundamentals. At current levels, the S&P 500 is trading at a five-year average price-to-earnings ratio, and seems to be incorporating both slower earnings growth and a higher risk premium relative to fixed income than we think is reasonable, given the underlying momentum present in the U.S. economy. Further, U.S. companies have minimal (~.6%) revenue exposure to Russia and Ukraine. While stock markets will likely remain choppy due to the risks posed by the continued conflict and the upcoming rate hike cycle, we think investors can expect attractive returns for high-quality U.S. equities from here.

Your J.P. Morgan team can help you determine the best course of action for your portfolio, given the market volatility. 

This chart shows the value of a $100,000 investment in a 60/40 portfolio from January 1, 1999, to February 23, 2022. The first data point came in at $100,000 in January 1, 1999. From there, it rose to $112,774 on September 5, 2000. Then it declined to $85,302 by October 4, 2002. Here, it rose to a relative peak of $148,751 by December 10, 2007. Then it declined to $102,035 on March 9, 2009. From there, it rose to an all-time high of $288,691 by January 26, 2018. Then it declined to $252,625 by December 24, 2018. From there, it rose to a peak of $337,532 by February 18, 2020. Here, it dropped to $252,060 on March 23, 2020. From there, it rose to an all-time high of $454,728 by January 4, 2022. From there until recently, it declined to $410,124. Additionally, the underlying table shows the cumulative returns of the 60/40 portfolio through different events, from December 31st of the year prior to February 23, 2022. The 60/40 portfolio had a cumulative return of 310.1% since Y2K in 1999, 259.7% since the Tech Wreck in 2000, 283.1% since September 11 in 2001, 320.7% since the dot-com bubble in 2002, 401.0% since the War on Terror (U.S. invades Iraq) in 2003, 298.1% since the Boxing Day tsunami in 2004, 260.0% since Hurricane Katrina in 2005, 249.2% since Pluto was demoted from planet status in 2006, 206.5% since the sub-prime blew up in 2007, 188.4% since the Global Financial Crisis (bank failures) in 2008, 321.3% since the depths of the Global Financial Crisis in 2009, 241.1% since the Flash Crash, BP oil spill and QE1 ended in 2010, 200.4% since the S&P downgraded U.S. debt and a 50% write-down of Greek debt in 2011, 192.6% since the second Greek bailout (existential threat to the euro) in 2012, 156.7% since the Taper Tantrum in 2013, 105.9% since the Ebola epidemic and Russia annexed Crimea in 2014, 86.3% since the global deflation scare and China FX devaluation in 2015, 85.8% since the Brexit vote and U.S. election in 2016, 70.0% since the Fed rate hikes and North Korea tensions in 2017, 44.6% since the trade war and February inflation scare in 2018, 49.8% since the trade war, impeachment inquiry and global growth slowdown in 2019, 21.4% since the COVID-19 pandemic and U.S. presidential election in 2020, and 5.4% since the Omicron variant and China regulatory crackdown in 2021, -8.0% since the aggressive Fed policy and Russia invaded Ukraine.

Get Top Market Takeaways delivered to your inbox.

All market and economic data as of February 2022 and sourced from Bloomberg and FactSet unless otherwise stated.

We believe the information contained in this material to be reliable but do not warrant its accuracy or completeness. Opinions, estimates, and investment strategies and views expressed in this document constitute our judgment based on current market conditions and are subject to change without notice.

RISK CONSIDERATIONS

  • Past performance is not indicative of future results. You may not invest directly in an index.
  • The prices and rates of return are indicative, as they may vary over time based on market conditions.
  • Additional risk considerations exist for all strategies.
  • The information provided herein is not intended as a recommendation of or an offer or solicitation to purchase or sell any investment product or service.
  • Opinions expressed herein may differ from the opinions expressed by other areas of J.P. Morgan. This material should not be regarded as investment research or a J.P. Morgan investment research report.

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

1000 Characters Maximum

Only 1000 characters allowed

Checkbox is not selected

Your Recent History

Important Information

All companies referenced are shown for illustrative purposes only, and are not intended as a recommendation or endorsement by J.P. Morgan in this context.

All market and economic data as of February 2022 and sourced from Bloomberg and FactSet unless otherwise stated.

The information presented is not intended to be making value judgments on the preferred outcome of any government decision.

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.

  • The MSCI China Index captures large- and mid-cap representation across China H shares, B shares, Red chips, P chips and foreign listings (e.g., ADRs). With 459 constituents, the index covers about 85% of this China equity universe. Currently, the index also includes Large Cap A shares represented at 5% of their free float adjusted market capitalization.
  • The Standard and Poor’s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index was developed with a base level of 10 for the 1941–43 base period.
  • The STOXX Europe 600 Index tracks 600 publicly traded companies based in one of 18 EU countries. The index includes small-cap, medium-cap and large-cap companies. The countries represented in the index are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Holland, Iceland, Ireland, Italy, Luxembourg, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

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.

IMPORTANT INFORMATION ABOUT YOUR INVESTMENTS AND POTENTIAL CONFLICTS OF INTEREST

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.

LEGAL ENTITY, BRAND & REGULATORY INFORMATION

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 Luxembourg, this material is issued by J.P. Morgan Bank Luxembourg S.A. (JPMBL), with registered office at European Bank and Business Centre, 6 route de Treves,  L-2633, Senningerberg, Luxembourg. R.C.S Luxembourg B10.958. Authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. J.P. Morgan Bank Luxembourg S.A. is authorized as a credit institution in accordance with the Law of 5th April 1993. In the United Kingdom, this material is issued by J.P. Morgan Bank Luxembourg S.A., London Branch, registered office at 25 Bank Street, Canary Wharf, London E14 5JP. Authorized and regulated by Commission de Surveillance du Secteur Financier and jointly supervised by the European Central Bank and the CSSF. Deemed authorized by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the United Kingdom for a limited period while seeking full authorization, are available on the Financial Conduct Authority’s website.  In Spain, materials are distributed by J.P. Morgan Bank Luxembourg S.A., Sucursal en España at its registered address: Paseo de la Castellana 31, Madrid 28046, Spain. J.P. Morgan Bank Luxembourg S.A., is authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. When acting through the Madrid branch, is also subject to the supervision of Bank of Spain and CNMV. Registered with Bank of Spain as a branch of J.P. Morgan Bank Luxembourg S.A. under code 1516. In Germany, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Frankfurt Branch, at its registered address Taunustor 1 (TaunusTurm), 60310 Frankfurt am Main, Germany. J.P. Morgan Bank Luxembourg S.A. is authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. J.P. Morgan Bank Luxembourg S.A., Frankfurt Branch is subject to regulation by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)) in Germany. In Italy, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Milan Branch, registered office at Via Cordusio 3, 20123 Milano, Italy. Authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. When acting through the Milan branch, J.P. Morgan Bank Luxembourg S.A. is also subject to the supervision of Banca d’Italia CONSOB. Milan Chamber of Commerce Registered Number: REA MI-2542712. Registered with Bank of Italy as a branch of J.P. Morgan Bank Luxembourg S.A. under code 8079. In the Netherlands, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Amsterdam Branch, at its registered address World Trade Centre, B-toren, Strawinskylaan 1135, 1077 XX, Amsterdam, The Netherlands. J.P. Morgan Bank Luxembourg S.A., Amsterdam Branch is authorized and regulated by the Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF in Luxembourg; J.P. Morgan Bank Luxembourg S.A., Amsterdam Branch is also authorized and 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 Bank Luxembourg S.A. under registration number 71651845. In Denmark, this material is distributed by J.P. Morgan Bank Luxembourg, Copenhagen Br, filial af J.P. Morgan Bank Luxembourg S.A. at its registered office at Kalvebod Brygge 39-41, 1560 København V, Denmark. Business Authority Number: 39608510 (CVR). J.P. Morgan Bank Luxembourg S.A. is authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF. When acting through the Copenhagen branch, J.P. Morgan Bank Luxembourg, Copenhagen Br, filial af J.P. Morgan Bank Luxembourg S.A. is also subject to the supervision of Finanstilsynet (Danish FSA) and registered with Finanstilsynet as a branch of J.P. Morgan Bank Luxembourg S.A. under code 29009. In Sweden, this material is distributed by J.P. Morgan Bank Luxembourg S.A., Stockholm Bankfilial, at its registered office at Hamngatan 15, Stockholm, 11147, Sweden. J.P. Morgan Bank Luxembourg S.A. is authorized and regulated by Commission de Surveillance du Secteur Financier (CSSF) and jointly supervised by the European Central Bank (ECB) and the CSSF.  When acting through the Stockholm branch, it is also subject to the supervision of Finansinspektionen (Swedish FSA). Registered with Finansinspektionen as a branch of J.P. Morgan Bank Luxembourg S.A. Organization Reference Number: 516406-1086. In France, this material is distributed by JPMorgan Chase Bank, N.A. (“JPMCB”), Paris branch, which is regulated by the French banking authorities the Autorité de Contrôle Prudentiel et de Résolution and the 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, 1204, Geneva, Switzerland, which is authorized and supervised by the Swiss Financial Market Supervisory Authority (FINMA), with registered address at Laupenstrasse 27, 3003, Bern, Switzerland, as a bank and a securities dealer in Switzerland. 

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. is 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.

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 U.S. 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.

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. 

© 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.