1. 2Q | 2011 Guide to the Markets As of March 31, 2011

2. 1 Table of Contents

3. 2 Returns by Style 2

4. 3 Returns by Sector 3

5. 4 U.S. Equity Indexes 4

6. 5 S&P 500 Index at Inflection Points 5

7. 6 Equity Scenarios: Bull, Bear and In-between 6

8. 7 Investment Style Valuations 7

9. 8 Stock Valuation Measures: S&P 500 Index 8

10. 9 Earnings Estimates and Valuation Drivers 9

11. 10 Deploying Corporate Cash 10

12. 11 Sources of Profitability 11

13. 12 Equity Correlations and Volatility 12

14. 13 Economic Expansions and Recessions 13

15. 14 Economic Growth and the Composition of GDP 14

16. 15 Cyclical Sectors 15

17. 16 Consumer Finances 16

18. 17 Federal Finances

19. 18 The Aftermath of the Housing Bubble 18

20. 19 Employment 19

21. 20 Job Growth, Productivity and Labor Force 20

22. 21 Small Business 21

23. 22 Corporate Profits 22

24. 23 Consumer Price Index 23

25. 24 Returns in Different Inflation Environments – 40 years 24

26. 25 Oil and the Economy 25

27. 26 Consumer Confidence 26

28. 27 Fixed Income Sector Returns 27

29. 28 Fixed Income Yields and Returns 28

30. 29 The Federal Reserve 29

31. 30 Credit Conditions 30

32. 31 Treasury Yields and Inflation 31

33. 32 Foreign Ownership of U.S. Treasuries 32

34. 33 High Yield Bonds 33

35. 34 Municipal Finance 34

36. 35 Emerging Market Debt 35

37. 36 International Returns: Local Currency vs. U.S. Dollars 36

38. 37 The Economic Growth Differential 37

39. 38 Global Economic Growth 38

40. 39 Global Monetary Policy 39

41. 40 Global Equity Valuations – Developed Markets 40

42. 41 Global Equity Valuations – Emerging Markets 41

43. 42 International Economic and Demographic Data 42

44. 43 Sovereign Debt Vulnerability 43

45. 44 Current Account Deficit and U.S. Dollar 44

46. 45 Currencies 45

47. 46 Asset Class Returns 46

48. 47 Correlations: 10-Years 47

49. 48 Mutual Fund Flows 48

50. 49 Dividend Income: Domestic and Global 49

51. 50 Global Commodities 50

52. 51 Gold

53. 52 Marginal and Average Tax Rates 52

54. 53 Historical Returns by Holding Period 53

55. 54 Diversification and the Average Investor 54

56. 55 Market Comebacks: Bear Markets and Intra-year Declines 55

57. 56 Alternative Investment Returns 56

58. 57 Corporate DB Plans and Endowments 57

59. 58 The Dow Jones Industrial Average Since 1900 58

60. 59 Page Reference

61. 60 J.P. Morgan Asset Management – Index Definitions

62. 61 J.P. Morgan Asset Management – Index Definitions

63. 62 J.P. Morgan Asset Management – Definitions, Risks & Disclosures