Weekly Market Outlook March 23, 2014
Weekly Market Outlook:
Pfäffikon SZ – Last week, the S&P 500 gained 1.37% and closed at 1866.40, despite all geopolitical tensions. The S&P 500 is currently trading at 16 times the expected earnings. That does not necessarily mean it is expensive. However, the call for a correction is becoming louder. At this moment we think, despite the remarkable closing last Friday, that it is too early to anticipate a possible correction. We note that the dividend season is imminent, which often makes shares – temporarily – attractive.
Remarkably, Janet Yellen – the chairman of the FED – deliberately remained somewhat unclear regarding the implementation of her (interest rate) policy. Yellen is also vague about the question when the interest rates will rise. This brings us back to the usual role of the FED. The coming week is primarily about home prices and consumer confidence in the U.S.. Additionally, Ukraine will undoubtedly require special attention. We think this issue will slowly fade into the background, given the soft butter sanctions against Russia. The world has other issues to worry about.
This material is communicated on March 23, 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.
