Weekly Market Outlook October 12, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Again, investors were faced with an extremely volatile stock market week. The S&P 500 lost a whopping 3.14 percent due to persistent concerns about global economic growth. Geopolitical tensions did the rest. October justifies its name among investors as one of the most feared months of the year.
Investors are no longer accustomed to volatility and seem depressed. For the past three years, there has been not one correction of 10 percent or more within the S&P 500. Therefore, in our opinion, the current correction does not mean so much. Compared to 2008 and 2009, it is even child’s play. In addition, we have addressed the current decline of 5.60 percent in the S&P 500 with 3.16% due to our hedging policy.
What next? We believe that there are low values of elongation in the current correction because the negative volume, particularly in the S&P 500, is decreasing. The risks of a cooling economy have been already well discounted in the share prices. Perhaps there are still some volatile weeks awaiting us, but we see this more as a buying opportunity towards the end of the year. Furthermore, we focus our gaze on what matters: the figures of the companies in which we invest.
This material is communicated on October 12, 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.
