Weekly Market Outlook August 3, 2014

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – The first pinprick of the bears is a fact, but panic is not yet forthcoming. Some investors were frustrated because the economic data was good and the earnings season is decent. The main factors that currently have a negative impact are the default of Argentina; the cosmetic sanctions against Russia; and the problems with the second largest bank in Portugal, which reported a billion loss.

The coming week is again dominated by the business figures, which are now halfway. Thursday, the ECB also takes an interest rate decision, though we expect that Mr. Draghi will not take action. There are signs that more money flows into the European economy.

The chance of a bounce in the S&P 500 is currently high, given the current oversold situation. Afterwards, we will reevaluate the scenery and sentiment for stocks to make an estimation with respect to a further correction.


This material is communicated on August 3, 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.