Weekly Market Outlook January 26, 2014
Weekly Market Outlook:
Pfäffikon SZ – 2014 already spread its visiting card. This year will be different than 2013. The published quarterly results of various multinationals were in general disappointing. Furthermore, investors are increasingly worried about China and meanwhile it seems that tapering is back on the financial agenda. But the biggest negative factor was undoubtedly a possible new currency crisis in emerging markets. We refer to the currencies of countries such as Argentina, Turkey and South Africa.
The coming week, some heavyweights will publish their quarterly results. But most attention will be given to macroeconomic news. Consumer confidence in the U.S. may get a severe blow caused by the bad winter weather. In a short period of time, the volatility (VIX) rose by more than 30 percent; from 12 to 18. This indicates that the financial markets will be highly volatile the coming period. The S&P 500 had its worst week since June 2012. For some time, we consider a major correction which appears to have started and may possibly persist for months.
This material is communicated on January 26, 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.
