EMAIL DETAILS

Market update. Recent US economic data continue to soften, as consumer spending, income, housing and manufacturing surveys have come in below expectations. It's too soon to tell if this is a temporary swoon like last year. The disconnect between subpar economic data and resilient equity markets is growing. Our views haven't changed since January: a recovery reliant on monetary and fiscal policy bazookas runs the risk of unexpected potholes, and negative feedback loops (higher commodity prices). Corporate profits are a clear bright spot, but require measures to address the negative personal income implications of all-time lows in relative wages. Our portfolios are positioned for a muddle-through kind of year.

On China. Last week, I had the opportunity to interview Dr. Henry Kissinger at our Institutional Research Summit on the occasion of his new book entitled "On China", and his 88th birthday. Opinionated, controversial, an unflinching believer in Realpolitik, unparalleled access to politicians around the globe, still an adviser to US Presidents; not much has changed for Dr. Kissinger in 50 years. This week's Eye on the Market summarizes the interview, which focused on China's past, present and future.

Michael Cembalest
Chief Investment Officer

The material contained herein is intended as a general market commentary. Opinions expressed herein are those of Michael Cembalest and may differ from those of other J.P. Morgan
employees and affiliates. This information in no way constitutes J.P. Morgan research and should not be treated as such. Further, the views expressed herein may differ from that
contained in J.P. Morgan research reports. The above summary/prices/quotes/statistics have been obtained from sources deemed to be reliable, but we do not guarantee their accuracy or
completeness, any yield referenced is indicative and subject to change. Past performance is not a guarantee of future results. References to the performance or character of our portfolios
generally refer to our Balanced Model Portfolios constructed by J.P. Morgan. It is a proxy for client performance and may not represent actual transactions or investments in client
accounts. The model portfolio can be implemented across brokerage or managed accounts depending on the unique objectives of each client and is serviced through distinct legal entities
licensed for specific activities. Bank, trust and investment management services are provided by J.P. Morgan Chase Bank, N.A, and its affiliates. Securities are offered through J.P.
Morgan Securities LLC (JPMS), Member NYSE, FINRA and SIPC. Securities products purchased or sold through JPMS are not insured by the Federal Deposit Insurance Corporation
("FDIC"); are not deposits or other obligations of its bank or thrift affiliates and are not guaranteed by its bank or thrift affiliates; and are subject to investment risks, including possible
loss of the principal invested. Not all investment ideas referenced are suitable for all investors. These views may not be suitable for all investors. Speak with your J.P. Morgan
Representative concerning your personal situation. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Private Investments may
engage in leveraging and other speculative practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuations to
investors and may involve complex tax structures and delays in distributing important tax information. Typically such investment ideas can only be offered to suitable investors through a
confidential offering memorandum which fully describes all terms, conditions, and risks. IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice.
Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion,
marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. Note
that J.P. Morgan is not a licensed insurance provider. (c) 2011 JPMorgan Chase & Co.


This email is confidential and subject to important disclaimers and
conditions including on offers for the purchase or sale of
securities, accuracy and completeness of information, viruses,
confidentiality, legal privilege, and legal entity disclaimers,
available at http://www.jpmorgan.com/pages/disclosures/email.