Weekly Market Outlook August 31, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Last week, the Russian stock market had to digest severe blows due to the ongoing turmoil in Ukraine. The American and European markets did not react, and the aforementioned divergence remains in place. The S&P 500 closed the week with a gain of 0.75 percent and closed above the magic threshold of 2,000 points.
The month of August was characterized by a wild ride and, based on history, September should not be different. The so-called “dumb money” seems to want to keep today’s rally intact, given the extremely low volumes. This picture of the market is a matter of concern for us and may produce unexpected instability.
The coming week will be about the macro data. Europe, the US, and China will be publishing key figures such as purchasing managers’ indices. The ECB will make itself heard again. Investors are looking for confirmation of Mario Draghi on new stimulus measures. In the coming weeks, as indicated earlier, we will be evaluating the sentiment for equities, in general, in order to make projections with respect to a new correction.
This material is communicated on August 31, 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.
