Weekly Market Outlook March 18, 2018
“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.” – Warren Buffett
Pfäffikon SZ, Switzerland – The focus of investors is, particularly on interest rates. However, it might be better to look at the difference between growth and value stocks. Usually, growth shares will lead the way, which ultimately creates value. Tech shares were leading on the global stock exchanges since 2007. Though, it is only a handful of companies that are responsible for the increase of the stock markets. This trend will not hold. Nevertheless, nobody can tell you when this fairytale will end. What we do know is that we rather are at the end instead of at the beginning of the outperforming tech shares. A change in market leadership is obvious.
Investors look –as mentioned– to the interest rate the coming week. In our opinion, inflation is still not an issue, but other factors may actually push up interest rates. When Japan and China show less interest in the auctions of US Treasuries, this will raise interest rates. Such a scenario is not inconceivable given the dynamism of the government Trump in the area of free trade. Free post-war trade thinking seems to have come to an end.
This material is communicated on March 18, 2018 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.
