Weekly Market Outlook February 8, 2015 - Thirteen Asset Management

Weekly Market Outlook:
Pfäffikon SZ, Switzerland – The good news is that the S&P 500 made 3.03% profit last week. The bad news is that the recovery was associated with less strength than the preceded decline. In addition, Wall Street couldn’t manage to keep their profits last Friday, resulting in a decline to below the 2065 points that is the top of the sideways trading range. We note that the strength is slowly flowing from the European markets, after the (too) steep uptrend in recent weeks. Meanwhile, oil prices seem to be ruled by speculators.

The coming week is packed with business figures. Corporate profits in the U.S. seem to be leveling off, which explains the current sideways trend in the S&P 500. The fly in the ointment is the increased hourly wages: Hourly wages are linked to the inflation target of the Federal Reserve (Fed). The probability that the Fed is going to increase interest rates in the foreseeable future has increased significantly with these figures. As you know, investors are terrified of rate hikes, even though these fears are unfounded for the long term.

This material is communicated on February 8, 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.