JP Morgan Guide to the Markets – Q3 2018

Good Morning – attached is the updated JP Morgan Guide to the Markets. As always, this piece is worth reading through when you have time. Below are a few charts that I picked out that seem timely.

S&P 500 Valuation – currently in line with 25-year average of forward P/E

S&P 500 EPS Growth – EPS growth driven most by margin expansion

Sector Weights Over Time – tech sector weight highest level since 2000

Correlations between rates and stock returns – yields below 5%, rising rates associated with rising stock prices

Price of Oil – Crude prices above $74 through June

Global PMI – ratings over 50 indicate “strong” position

Peter Malone, CFA

Research Analyst

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JPM Guide to Markets Q3 2018.docx.pdf