Weekly Market Outlook February 4, 2018
“Don’t overspend. Even Mozart couldn’t get away with doing that.” – Charlie Munger
Pfäffikon SZ, Switzerland – The decline in US stock markets is the strongest since early January 2016 (-6.2%) and since President Trump’s election. Possible interest rate increases apparently play tricks on the sentiment, while other factors on the stock exchange have been ignored for years.
The current decline seems to be a storm in a glass of water. Fed chairman Janet Yellen has left, and investors seem to have to get used to her successor Jerome Powell. Additionally, only ten shares within the S&P 500 make up the service, and this small group represents a whopping 22% of the value of this important index. This puts last Friday’s decline in perspective.
Investors face another busy week, with many quarterly results from companies and a fair amount of macroeconomic data.
This material is communicated on February 4, 2018 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.
