Weekly Market Outlook September 28, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – The past week is statistically known for being the year’s worst week for stocks. The S&P 500 dropped 1.37 percent and thus lost the profits of the previous week. Since the “Alibaba Peak” markets are declining, this is no coincidence. Noteworthy is that the small caps seem to continue their nosedive. An important fact is that the continued improvement of the dollar is going to play tricks on the U.S. economy, although the fundamental factors are still solid. Nevertheless, there is virtually not a single sector that does not suffer from a strong dollar. For investors, this is an important issue. Last week, the S&P 500 swung pretty back and forth, which is a wake-up call for investors with a short horizon. The increased geopolitical tensions undoubtedly played a role, but investors were also extremely sensitive to a possible rising interest rate.
The coming week’s calendar is well-filled, with a focus on the macro data. For European investors, the main focus is on Thursday, when the European Central Bank will publish its monthly interest rate decision. However, it will not be all about the interest rate decision itself but more about the progress of the previously announced support operation. In the U.S., major economic data, such as the ISM report, will be published in September. Furthermore, investors will start preparing themselves for the third quarter’s business figures.
This material is communicated on September 28, 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 or otherwise disseminated in whole or 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.
