Weekly Market Outlook September 14, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Last week, there came an end to the rise in the S&P 500 (-1.1%), which lasted as many as six weeks. Noteworthy is that the decline in the S&P 500 was established with an increasing volume. The relative tranquility in the equity markets is in stark contrast to the developments in the foreign exchange and commodity markets. Due to these developments, the equity markets are at a crossroads. The key question is whether the turbulence in the currency and commodity markets will spill over to the equity markets. The S&P 500 will show its colors anyhow.
The coming week is dominated by the Fed. Even though we expect – not yet – an interest rate increase in the U.S., the relevant explanation of Janet Yellen will be a decisive factor. In addition, Russia will probably retaliate hard with sanctions, which will certainly do no good to the fragile European economy. The Russians believe that they are being cheated by the NATO for the last 25 years, partly because the North Atlantic Treaty Organization —in violation of previous agreements— is pulled to the East. Furthermore, the Scots will vote on their independence on Thursday, which can be a wake up call for the EU as a whole.
All in all, it promises to be an exciting and intense trading week for investors.
This material is communicated on September 14, 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.
