Weekly Market Outlook July 6, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Lately, many experts are wrong about the markets. Gold does not do much, and hyperinflation is totally absent. On the other hand, there is certainly no question of deflation. The U.S. economy is increasingly gaining momentum and is by many – including the Fed – repeatedly underestimated. The conclusion is that the current environment is excellent for equities. Equity valuations in general increased, but can certainly not be called excessive. The earnings continue to increase, which have to be reaffirmed during the publication of the company figures the coming weeks.
In addition, there is a low volatility. All this resulted in a DAX that closed above the psychological barrier of 10,000 points and a Dow Jones that broke the barrier of 17,000 points. Last Thursday, the Dutch AEX succeeded strongly to break through the 14-year downward trend. The coming week is likely to be quiet as many investors enjoy their vacation. A possible “Black Swan” must be sought in geopolitical problems, which are to date ignored by the financial markets.
This material is communicated on July 6, 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.
