Weekly Market Outlook November 9, 2014
Weekly Market Outlook:
Pfäffikon SZ, Switzerland – Last week was the last busy week of the year for investors. First, the BOJ surprised the markets with more monetary easing, this time it was ECB’s Mario Draghi who prepared the market for additional stimulus measures. The S&P 500 closed an eventful week in peace with a gain of 0.69%.
Meanwhile, our indicators are showing bullish signals for both the short, medium and long term. Let’s just in the middle. We leave it to the markets whether or not the occasion of the further increased stock prices is correct. In the end, it is all about the fundamentals. The fact is that finding undervalued companies in some regions is becoming increasingly difficult. Due to this reason, restraint is important in the next phase of the current bull market, which can persist much longer than many expect.
Heavy accusations towards the West by Mikhail Gorbachev, the last president of the Soviet Union in 1989 who allowed the fall of the Berlin Wall, were remarkable. Gorbachev warned in Berlin for a new Cold War and called on the West to resume a dialogue with Vladimir Putin, which is a sensible recommendation. Also, notable is that the U.S. has supported Russia in the conflict in Ukraine this weekend. Meanwhile, the U.S. is also convinced that Ukraine does to little to defuse the crisis. These developments may be important for the portfolio of Thirteen Diversified Fund, because of our exposure in this region.
The week ahead will be in the U.S. about the consumer, focusing on retail sales. In addition, the U.S. unemployment figures will be published, where we expect that the downward trend will continue. The earnings season is slowly coming to an end and shows a mixed overall picture. The U.S. economy is clearly picking up pace compared to the economy in Europe.
This material is communicated on November 9, 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.
