Weekly Market Outlook October 5, 2014

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Investors have had a wild week. Again, it appeared that the many technical analyses did not add any value. Volatility on the stock markets increased, and the commodities—oil in particular—experienced notable downward price movements, whether or not driven by a strengthening dollar. In the end, the good news turned out to be actual good news. A positive report on the American job market gave the stock markets wings on the final day of the week. Hence, the S&P 500 ended the week with a loss of only 0.75%.

As indicated previously, a strong dollar and, therefore, a relatively weak euro will affect many companies. We welcome the fact that, in the coming weeks, investors will be slowly shifting their focus from macroeconomic and geopolitical factors to the things that really matter: the company in which you have invested.

A positive development is that dividend payments in the S&P 500 are still attractive, and the upward trend seems set to continue. In terms of valuation, the S&P 500 is more or less where it was a year ago. When the business numbers are favorably received, there is room for higher stock prices. The President’s Cycle will also do some good. We will operate increasingly reluctantly when stock markets continue to increase due to the free money policy fueled by central bankers.


This material is communicated on October 5, 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.