Cumulative real growth ⌃ household financial asset wealth[astounding data across 5 regimes]

Source | Strategic Economic Decisions, Inc.

1

Mean-reverting dynamics ⌃ US net worth[back to the future]

Source | Strategic Economic Decisions, Inc.

2

Household net worth ⌃

3

Source | FRB, J.P. Morgan Asset Management

Global Productivity Growth⌃

• “Productivity isn’t everything, but in the long run it is almost everything” – Paul Krugman

• Growth rate of an economy is the sum of workforce growth plus labor productivity growth

International Economic and Demographic Data

US Business Competitiveness ⌃

• Institutions

• Infrastructure

• Macroeconomic

environment

• Health and primary

education

• Higher education and

training

• Goods market efficiency

• Labor market efficiency

• Financial market

development

• Technological readiness

• Market size

• Business sophistication

• Innovation

GDP growth, Gross debt to GDP ⌃ borrowing costs

Source | IMF, FactSet, Bloomberg, J.P. Morgan Economics, Barclays, J.P. Morgan Asset Management

7

Average annual earnings ⌃ Highest degree earned

Source | Census Bureau, J.P. Morgan Asset Management

8

Unemployment rate ⌃ Education level

Source | BLS, FactSet, J.P. Morgan Asset Management

9

US Natural gas production ⌃

Source | EIA, IMF, FactSet, J.P. Morgan Asset Management

10

US sources of oil and liquid fuels ⌃

Source | EIA, J.P. Morgan Asset Management

11

12

Emerging economies poised to pass $3,000GDP per capita threshold

CPI ⌃ Core CPI

Source | BLS, FactSet, J.P. Morgan Asset Management

13

CPI ⌃ Core CPI

Source | BLS, FactSet, J.P. Morgan Asset Management

14

Cumulative flows into stock and bond funds ⌃

15

Source | Investment Company Institute, J.P. Morgan Asset Management

Benefits of diversification ⌃

16

Source | Thomson Reuters Investment View

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Annualized returns by asset class

18