Weekly Market Outlook June 1, 2014

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Last month, the S&P 500 closed with a gain of 1.8%, and the Nasdaq improved an even 2.9%. The Russian Micex had its best month in the last 2½ years, and now writes 16% higher since its low on March, 16. Who said “Sell in May”? The volatility of the U.S. and European stock markets has now fallen to a pitifully low level, but this could change in the coming week.

The calendar is filled with important economic reports, such as the unemployment rate in the U.S. and various ISM reports. In Europe, all eyes are on the ECB and Mario Draghi. Investors expect a decline in interest rates to stop a possible deflation. The deposit rate may even become negative. In the coming months, it should become clear whether or not investors will be surprised by a further improving economy, particularly in the U.S.


This material is communicated on June 1, 2014 by Thirteen Asset Management AG, Rietbrunnen 20, 8808 Pfäffikon SZ, Switzerland. This material is for information purposes only and is not intended to be a solicitation or invitation to invest. Any organizations or products described in this material are mentioned for reference purposes only. This material is intended only for investment professionals and professional clients and must not be relied upon by any other person. It is proprietary information of Thirteen Asset Management AG and may not be reproduced of otherwise disseminated in whole of in part without prior consent from Thirteen Asset Management AG. Alternative investments can involve significant risks and the value of an investment may go down as well as up. There is no guarantee of trading performance and past or projected performance is not a reliable indicator of future performance. We recommend to consult your bank, investment and/of tax adviser.