Economy & Markets

Market Thoughts: A glimmer of hope

Feb 14, 2023

CIO Richard Madigan assesses the current state of the economy and markets—and shares how we are positioning portfolios now.

Market Thoughts: A glimmer of hope

  • Central banks continue to reinforce their commitment to taming inflation. They can’t afford to sound dovish; they don’t want markets melting up. Doing their job gets harder ahead.
  • Markets reflect a softish landing, a hard landing is not priced in. While a hard landing isn’t our base case, it’s not a zero probability. It isn’t time to be chasing after markets.
  • Investors are looking through higher policy rates. We’re close to central banks readying to pause rate hikes. We still have quantitative tightening to get through.
  • Policymakers are attempting to slow demand, and by extension growth, to regain control of still too high inflation. It’s working.

is the narrative currently seized by markets. We continue to see positive news both on inflation as it trends lower and global growth, which remains better than feared. That’s good news for the soft landing crowd, bad news for recessionists.

China’s move away from zero-Covid is adding to confidence. Their reopening lends support to global growth, which continues to slow. It’s constructive for Asia from an economic perspective. It’s also beneficial for global trading partners as well as multinationals that source demand from the region.

A reawakened China makes the job of central banks a bit more challenging. They’re ramping up demand, with commodity markets the first to react. That may keep headline inflation higher for longer than policymakers like. The re-opening of supply chains can help balance out that reflationary pulse, specifically as it relates to global input costs and trade.

With labor markets and wages stable, consumption will likely see support from lower inflationary pressure and savings rates returning to trend (Figure 1). While excess pandemic savings are being spent down, they’re at levels that remain supportive of a slowing, not breaking, economic backdrop.

Figure 1: Global inflation has likely peaked

Source: National statistics agencies, Haver Analytics. Data as of December 2022. Calculated by averaging the relevant CPIs of 22 advanced economies weighted by each country's share of total nominal GDP in 2015. Past performance is not a guarantee of future results.
Line chart of Advanced Economies (AE) headline and core consumer price indices (CPI) shown on a year-over-year (yoy) percentage change basis (y-axis) through December 2022. Monthly data points are displayed since 2011 (x-axis). Headline and core CPI are calculated by averaging the relevant CPIs of 22 advanced economies, weighted by each country's share of total nominal GDP in 2015. Prior to 2021, core inflation as shown was hovering around or below 2%; but starting in 2021, a marked inflation increase occurred, with both headline CPI reaching a high of 8% and core CPI at around 5% in October 2022. However, over most recent couple of months both headline and core CPI declined from peak levels, which may indicate a downward inflation trajectory.

is the song playing in the background for central banks as they push rates higher. Their challenge remains guidance about what comes next. Both the Federal Reserve (Fed) and European Central Bank (ECB) continue to reinforce their commitment to taming inflation. They also need to acknowledge inflation is moving in the right direction without sounding dovish. They don’t want markets melting up.

In a January interview, Larry Summers emphasized policymakers need to maintain maximum flexibility. The phrase he used I found particularly grounding was to acknowledge central banks are “driving on a very, very foggy night.” I couldn’t agree more; they still are.

I continue to take both the Fed and ECB at their word. I’m anchoring on a terminal policy rate target for the Fed of around 5-5.25% by the end of the second-quarter. For the ECB, those numbers are 3-3.25% (Figure 2). Each central bank will continue to maximize policy optionality. Doing their job gets harder from here. Policymakers will soon pause rate hikes. That doesn’t mean they’re done hiking.

Figure 2: Major developed central banks continue with rate hikes

Source: National Central Banks, Haver Analytics. Data as of February 2023.

The fact that the difference between 10-year and 3-month U.S. government bond yields turned negative last October was noteworthy. I keep a close eye on that part of the bond curve to signal increasing market concern of recession. So does the Fed.

Term structure inversion has only deepened since. The tea leaf reading of that inversion falls squarely under the umbrella of choose your own adventure. Investors remain spilt on whether it’s signaling good or bad news. That tug of war is likely to continue.

For optimists, bond curve inversion indicates a Fed artfully walking the line of tightening policy rates while avoiding a hard landing. I share that view as a base case. It feeds into why we are neutral equities. Also, why we hold positions in high yield and investment grade credit.

If the U.S. Treasury curve inverts further, markets will likely anticipate the Fed is pushing the economy into a hard landing. While the difference between 10-year and 3-month interest rates may be the best predictor of a recession, historically it has told us very little about how soon a recession will happen or how severe it will be.

On average (note my qualifier), once term structure inverts a recession tends to follow about a year later. The size of the inversion provides an indication of how worried investors are about the economic outlook. It’s a good read on sentiment but its neither predictive of the severity of a recession, nor as important as the inversion itself.

“What we’ve got here is failure to communicate.” That line is from the movie Cool Hand Luke. It was said by Captain as Luke is given a hiding. I thought of it as I continue to watch investors battle the Fed and ECB on their “we’re all in” on tightening narrative. The key question… is the market Luke or Captain?

“Don’t fight the Fed” is a truism on Wall Street. And yet, the reality is an artful central bank wants the market to do the heavy lifting for it, especially when it comes to rate hikes. Investors are having none of it, they’re pushing back.

Markets want to be done with last year, quickly moving on to a more normal environment. “Buy the dip” was fun and simple, especially with easy money acting as the foundation for risk taking. Easy money is over. The cost of capital is rising and in my mind, risk premia don’t reflect the challenges ahead.

That is unless you believe the Fed is getting ready to pause and that they will cut rates this year. Investors hope the Fed believes—as they reach +5% on policy rates in the coming months—they’ve overshot. Maybe, but labor market strength and lessons learned from the 1970s give them the impetus to hike further. Then, to hold policy rates higher for longer. Hope is never a good investment strategy.

Valuations across risk assets reflect a softish landing. A hard landing isn’t in current market pricing. And while a hard landing isn’t our base case, it’s not a zero probability. That leaves us not wanting to over-reach for risk. Markets have run fast and furious, we’re due a breather.

Ultimately, a market is worth what someone is willing to pay for it. With some of the worst fears coming into this year ostensibly abating, investors are hungry to embrace risk. I chalk that up to human nature. Greed may be good, but it can prove short-lived.

The Beatles’ “I’m looking through you” is the current market theme song. If there’s a surprise ahead it may be that the current inflation, tightening and risk asset repricing cycles run longer than imagined, not breaking the global economy. We seem to be heading in that direction.

Markets, reinvigorated by risk-on sentiment, are looking past higher policy rates. The basic view is we’re closer to central banks being done with raising rates. Improvements in supply chain bottlenecks, a continued decline in both headline and core inflation and a slowdown in housing, retail sales and production are contributing to the feel good sentiment.

It’s interesting to watch the push and pull on sentiment. As it relates to central banks having to pivot sooner, we’ve gone from bad news being good news to bad news being bad. Inflation continues to roll over. That should only accelerate as the lag in rents and housing begin to weigh more directly on the pace of disinflation. That’s good news.

The bad news? Investors are rightfully reacting cautiously to falling growth. In the current environment, you can’t have disinflation without a decline in growth, as well as weaker wages and labor markets. Central banks are attempting to slow demand, and by extension growth, to regain control of inflation. It’s working. Hopefully what we’re seeing doesn’t prove to be transitory disinflation. Markets suffered enough last year at the hands of transitory inflation.

Slower economic growth begets slower top-line revenue growth. Margins in the U.S. remain above long-term trend levels (Figure 3). I expect we will see margins mean revert, moving lower. Layoffs are likely to continue. In aggregate, they’ve not yet been alarming. As headlines, they make for bad news.

Figure 3: U.S. corporate margins remain elevated

Source: FactSet. Data as of December 2022. Past performance is not a guarantee of future results. It is not possible to invest directly in an index.

I’d characterize the earnings season we’ve just come through as good enough for equity markets to remain supported. That said, valuations in the U.S. are moving farther away from concern of recession. U.S. equity markets may be well below peak, but they’re not cheap.

We’ve been adding to European equities, funded from the U.S. I view that shift as defensive repositioning with upside. Europe is attractively valued both to its own history as well as relative to the U.S. In a broad market pullback, I expect Europe’s lower valuation to provide lower down-capture relative to the U.S. Should the global economy continue to surprise positively, Europe offers an opportunity for further re-rating.

European top-line and earnings growth are outperforming U.S. companies. Sectors in Europe we are focusing on include consumer discretionary, specifically luxury where consensus still seems to be underestimating earnings growth thanks to China’s reopening. In addition, we favor consumer staples with a focus on beverages. European banks continue to surprise positively as well.

We retain an overweight in portfolios to extended and investment grade credit, including European companies. We added to longer maturity bonds last year as rates pressed higher. We’re currently neutral duration. With yields higher, bonds can again serve as a diversifier of portfolio risk. They’re also adding carry, via higher interest rates.

I want to ensure portfolios are in a position that allows us to stay in the game if markets continue to press higher. Should we see a sell-off, we’ll quickly pivot, leaning into the pockets hardest hit. We’re staying the course in the overall level of risk we’re taking. We’ll undoubtedly see opportunities ahead, we always do. They tend to appear when least expected.

 

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 426 constituents as of December 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 237 constituents as of December 2022, the index covers approximately 85% of the free float-adjusted market capitalization in Japan.

 

Indices are not investment products and may not be considered for investment.

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

> or < are not allowed

Checkbox is not selected

Your Recent History

Important Information

International investments may not be suitable for all investors. International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the U.S. can raise or lower returns. Some overseas markets may not be as politically and economically stable as the United States and other nations. Investments in international markets can be more volatile.​

Bonds are subject to interest rate risk, credit, and default risk of the issuer. Bond prices generally fall when interest rates rise.​

This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part 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.

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.

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 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 JPMorgan Chase Bank, N.A.–Paris Branch, registered office at 14,Place Vendome, Paris 75001, France, registered at the Registry of the Commercial Court of Paris under number 712 041 334 and licensed by the Autorité de contrôle prudentiel et de resolution (ACPR) and supervised by the ACPR and the Autorité des Marchés Financiers. In Switzerland, this material is distributed by J.P. Morgan (Suisse) SA, with registered address at rue du Rhône, 35, 1204, Geneva, Switzerland, which is authorised and supervised by the Swiss Financial Market Supervisory Authority (FINMA) as a bank and a securities dealer in Switzerland.

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.

© $$YEAR 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. Insurance products 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.