Weekly Market Outlook August 23, 2015

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – The most narrow sideways trend since decades in the S&P 500 is finally abandoned. Investors fear deflation due to the economic slowdown in China and falling commodity prices. Does this mean the end of the bull market? We think not.

The current investment climate still speaks clearly in favor of equities, and this will certainly continue for some time. Additionally, investors seem to have forgotten that the ECB is injecting monthly EUR 60 billion of liquidity into the market. Central bankers will fight deflation with an iron fist, even in China.

Coincidence or not, next week, various inflation rates are on the agenda now that the earnings season is nearing its end. This will provide greater clarity if the fear of deflation is justified.


This material is communicated on August 23, 2015 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.