Weekly Market Outlook May 18, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – With every pullback, investors think that the correction is imminent, but for this, more is required. The fact is that a combination of improved business figures, an improving economy in the U.S. and less financial stress, still justifies the current rally.
However, we note that we are living in a highly leveraged world that entails taking necessary risks. The coming week, the agenda is pretty empty. It is all about macro economy. Investors in Europe are prepared for a negative deposit rate, to tackle the eurozone’s low inflation and to stimulate the economic growth.
To conclude, a chart comparing the average annual compound real return on equities with gold. For the period 1928-2013, equities had a return of 6.3% versus 2% for gold. After the gold standard was left mid 70s, the return on equities is even slightly higher, namely 7.2%.
This material is communicated on May 18, 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.
