Weekly Market Outlook September 7, 2014

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – And again, it was Mario Draghi of the ECB who gave investors a gift in the form of a symbolic cut in interest rates and European-style QE. Rallies fueled by central bankers eventually end in tears. However, no one can indicate when a correction comes, and the current bull market could continue for years. Nevertheless, many professional investors feel uncomfortable and nervous. Noteworthy is the margin requirement on the NYSE, which is now higher than in 2000 and 2007.

In addition, it is striking that the increase in the S&P 500 is for 100%, worn by overnight trading since the second half of August. When the market opens, money will be continuously extracted. This is reminiscent of an earlier pattern in March and April of this year, which is a bad sign. Maybe it has to do with the largest IPO of all time—the IPO of Alibaba—that must succeed at all costs. Needless to say, we are currently acting with caution. The coming week’s focus will be on China’s growth and European inflation figures. We are waiting for the trigger which will awaken the market and set it in motion.


This material is communicated on September 7, 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.