Weekly Market Outlook January 25, 2015

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – That the president of the ECB – Mario Draghi – is a determined man, we already knew for a while. Draghi will stimulate the European economy by buying bonds in the amount of no less than 1.14 billion euros, a measure we would have preferred to see instituted two years ago. However, European investors reacted euphorically. On Thursday, the volume of trading in the S&P 500 was 23% higher than the average for the last three months. Traders are hunting short-term gains, while long-term market participants are becoming more cautious. According to FactSet, the P/E ratio of the S&P 500 currently amounts to 16.6, a level we have not seen since 2005. The P/E ratio of the energy sector is at its highest level since 2002.

The coming week will be a busy one for investors as it will see the publication of some important macroeconomic news. Key points are U.S. growth rates and business confidence in Germany. In addition, many companies – even companies from our portfolio – open their books. Basically, the trading week really starts today with the elections in Greece. However, a Grexit is not very likely.


This material is communicated on January 25, 2015 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.