Weekly Market Outlook November 16, 2014

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Last week, the S&P 500 increased by 0.39% and closed at 2039.82 points. This rest was a hoax, especially if we take into account the Dutch stock market. The volatility in several equities was significant. The improving gold price and the increasing euro were, moreover, remarkable. In particular, Russia is buying physical gold. November 30, there will be a referendum in Switzerland on the deposit of at least 20% of the official gold reserves.

According to many gurus, the S&P 500 may on the eve of a crash. We note that corporate profits within the S&P 500 have risen about 9.6% this year. Coincidence or not, but the S&P 500 has recorded YTD an increase of 10.33%, which only follows the trend of increased corporate profits. A crash would, therefore, seem premature. As long as interest rates remain low and corporate profits increase, then equities are simply the place to be. The investment environment can obviously change, but this seems not to be the case in the short term.

Next week, the focus will be particularly on the U.S. The purchasing managers’ index and the leading indicators will give a good picture of the state of the U.S. economy. It is also interesting how U.S. consumer spending is developing. The sharp decline in fuel prices may, at this point, cause a positive surprise.


This material is communicated on November 16, 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 or otherwise disseminated in whole or 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.