“Sometimes buying early on the way down looks like being wrong, but it isn’t.” – Seth Klarman
Pfäffikon SZ, Switzerland – Relatively low volume caused volatility last week. Investors are driven by the Brexit, the so-called trade war between China and the US and the accrued interest. The Brexit seems to get its shape very slowly. Meanwhile, a trade deal between China and the US could lead to a relief rally. In this context, the G20 summit will be a point of attention coming week.
The Fed will also speak. It is not inconceivable that the Fed will put possible interest rate hikes in 2019 into the refrigerator to accommodate critics. In short: enough ingredients for a resumption of the stock market’s advance. The bull market is still intact, and the economy is running correctly. Hysterical overheated markets –the hallmark of the end of a bull market– are not yet available.
In the next week, the focus will be on the G20 summit in Buenos Aires. However, also the words of Fed chairman Jerome Powell will be weighed. 2019 seems to be the year of the debate on inflation
This material is communicated on November 25, 2018 by 1324 | 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 1324 | by Thirteen Asset Management AG and may not be reproduced or otherwise disseminated in whole or in part without prior consent from 1324 | by 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.