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Midnight musings: 3 risks keeping us up at nightVideo

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Video ADA Text: Midnight musings: 3 risks keeping us up at night

Transcript Browser Title: Midnight musings: 3 risks keeping us up at night

Description: Risks abound—from high rates and frothy valuations to election uncertainty. Here’s how investors can stay vigilant.

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Audio Description Video Id: 6352195442112

Length (seconds): 106

Transcript: <h2>Side note:</h2> <p>Background music plays.</p> <h2>On screen:</h2> <p>This video opens on a woman wearing a black blazer, in an office with plants and natural wood accents.</p> <h2>Side note:</h2> <p>A bold disclaimer appears in a text box:</p> <h2>On screen:</h2> <p><strong>INVESTMENT AND INSURANCE PRODUCTS:</strong></p> <ul> <li><strong>NOT A DEPOSIT</strong></li> <li><strong>NOT FDIC INSURED</strong></li> <li><strong>NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY</strong></li> <li><strong>NO BANK GUARANTEE</strong></li> <li><strong>MAY LOSE VALUE</strong></li> </ul> <h2>Elyse Ausenbaugh:</h2> <p>Here are your Top Market Takeaways.</p> <h2>On screen:</h2> <p>A circle with a title expands:</p> <h2>On screen:</h2> <p>Top <strong>MARKET TAKEAWAYS</strong></p> <h2>On screen:</h2> <p>A question appears over gray: Will May flowers bring brighter prospects for European equities?</p> <h2>On screen:</h2> <p>Text appears over the speaker:</p> <h2>On screen:</h2> <p><strong>ELYSE AUSENBAUGH</strong></p> <p>Head of Investment Strategy</p> <p>J.P. Morgan Wealth Management</p> <p>May 3rd, 2024</p> <h2>Elyse Ausenbaugh:</h2> <p>As the flowers start to bloom, it could be a good time to &quot;spring clean&quot; your portfolio- especially as it relates to making sure you have appropriate diversification. With many investors exhibiting a home country bias, we're looking to opportunities in the global equity landscape outside of the U.S. And one area where we're seeing green shoots this spring? Europe, thanks to an improving macroeconomic backdrop, attractive valuations, and the potential for favorable shareholder returns.</p> <h2>On screen:</h2> <p>A text box appears beside her, titled:</p> <h2>On screen:</h2> <p><strong>European Outlook</strong></p> <ul> <li><p>Improving macroeconomic backdrop</p> </li> <li><p>Attractive valuations</p> </li> <li><p>Potential for favorable shareholder returns</p> </li> </ul> <h2>On screen:</h2> <p>Another question appears over gray:</p> <h2>On screen:</h2> <p>Will the macroeconomic backdrop improve?</p> <h2>Elyse Ausenbaugh:</h2> <p>Almost like an animal coming out of hibernation, economic activity on the European continent is starting to pick back up after a period of stagnation in the second half of 2023.</p> <h2>On screen:</h2> <p>A line graph is titled, 'Global growth has been picking up,' and subtitled, 'Composite purchasing manager index (PMI), fifty plus equals expansion.' The vertical axis ranges from 44 to 60, while the horizontal axis ranges from years '22 to '24. Lines representing Global Composite PMI, Eurozone Composite PMI, and US Composite PMI all follow a similar trajectory. They start between 52 and 54 in '22, then go up to about 58 before dipping down to between 44 and 50 after mid-'22. At the start of '23, they rise steadily until they reach about 55. They dip again in mid-'23, with the Global and US Composite PMIs remaining around 50 while the Eurozone Composite PMI dips to about 48. While the US Composite PMI is trending down in '24, the Eurozone Composite PMI is trending up past 50. Below, a dotted arrow shows its trajectory.</p> <h2>Side note:</h2> <p>Small print text appears.</p> <h2>On screen:</h2> <p>Sources: S&amp;P Global, J.P. Morgan, Bloomberg Finance L.P. As of April 25, 2024.</p> <h2>Elyse Ausenbaugh:</h2> <p>But note that many European companies are big, multinational businesses that actually drive most of their sales outside of Europe – so, the picture for global growth is important, too.</p> <h2>On screen:</h2> <p>A question appears over gray: Why does today present an attractive entry point for European equities?</p> <h2>Elyse Ausenbaugh:</h2> <p>Did you know that as a whole, the European stock market's dividend yield of over 3% is one of the highest in the world?</p> <h2>On screen:</h2> <p>The screen splits, and a number appears over an outline of Europe:</p> <h2>On screen:</h2> <p><strong>3%</strong></p> <p>European Stock Markets Dividend Yield</p> <h2>On screen:</h2> <p>Below that, a plus sign appears, then an upward pointing arrow labeled:</p> <h2>On screen:</h2> <p>SHARE BUYBACKS</p> <h2>Elyse Ausenbaugh:</h2> <p>That, plus an increase in share buybacks creates a solid foundation for returns. European equities are trading at a larger-than-average valuation discount relative to their U.S. peers – we think that that gap could close as more investors recognize the potential for European equities to move higher.</p> <h2>On screen:</h2> <p>A bulleted list appears below a title with a magnifying glass:</p> <h2>On screen:</h2> <p><strong>KEY TAKEAWAYS</strong></p> <p>Now may be a good time to consider adding European equity exposure</p> <p>We see possible upside based on improving economic backdrop, attractive valuations and favorable shareholder return potential</p> <h2>Elyse Ausenbaugh:</h2> <p>To learn more, please visit chase.com/theknow.</p> <h2>On Screen:</h2> <p>J.P.Morgan Wealth Management logo.</p> <h2>On screen:</h2> <p>To learn more, please visit chase.com/theknow.</p> <h2>Side note:</h2> <p>Legal disclosures.</p> <h2>On screen:</h2> <p>All market and economic data are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.</p> <p>The views, opinions, estimates and strategies expressed herein constitutes the speaker's judgment based on current market conditions and are subject to change without notice, and may differ from those expressed by other areas of J.P. Morgan. This information in no way constitutes J.P. Morgan research and should not be treated as such. You should carefully consider your needs and objectives before making any decisions --including 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 any investment or financial service, product or strategy prior to making an investment decision. For additional guidance on how this information should be applied to your situation, you should consult your advisor.</p> <p>Investing in securities involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.</p> <h2>Side note:</h2> <p>A disclosure in bold reads:</p> <h2>On screen:</h2> <p><strong>Outlooks and past performance is not a guarantee of future results.</strong></p> <h2>Side note:</h2> <p>The final disclosure in regular font reads:</p> <h2>On screen:</h2> <p>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.</p> <p>Asset allocation/diversification does not guarantee a profit or protect against loss.</p> <p>J.P. Morgan Wealth Management is a business of JPMorgan Chase &amp; Co., which offers investment products and services through (in bold) <strong>J.P. Morgan Securities LLC </strong>(JPMS), a registered broker-dealer and investment adviser, member 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. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase &amp; Co. Products not available in all states.</p> <p>Copyright {{copyrightCurrentYear}} JPMorgan Chase &amp; Co.</p>

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