Weekly Market Outlook March 16, 2014
Weekly Market Outlook:
Pfäffikon SZ – Last week, the S&P 500 lost 1.97% and decreased only 0.39 % YTD. A different situation exists at the Russian RTS-Index, which already lost 26.36% this year caused by the turmoil in Ukraine. According to Goldman Sachs, investors already withdrew approximately 45 billion US dollars from the Russian stock market this year. On an annual basis, this amount would be increased to approximately 130 billion US dollars. According to Goldman Sachs, mainly Russians withdraw money as they are afraid of Western sanctions.
Interesting to note is that every time the RTS Index crashed a stronger recovery occurred afterwards (see chart). Today it was announced that the Ministry of Defense of Ukraine and Russia have reached an agreement on a truce in Crimea until March 21. The coming week’s priorities are the interest rate decision of the FED and the possible statements about the further reduction of the stimulus measures. For us, the question remains of where the market would be without the help of the FED. In Europe, particularly the German ZEW-Index draws the attention.
This material is communicated on March 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 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.
