Weekly Market Outlook May 6, 2018
“I realized that technical analysis didn’t work when I turned the chart upside down and didn’t get a different answer.” – Warren Buffett
Pfäffikon SZ, Switzerland – Many investors become very nervous when the S&P 500 lists under 200-DMA. Last Thursday, the S&P 500 was for almost the entire day under this 200-DMA level and then improved considerably on Friday. Do not be fooled by all this technical fuss. Market behavior has been uncertain since February, and it seems not over yet.
Nevertheless, we think that the end of this so-called bottoming process is in sight and that equities will take a new step. The discussion about a possible bear market will move to 2019/2020 and will probably get more shape by then. It is all the more recommended to maintain a balanced stock portfolio.
In the coming week, the financial season is slowly coming to an end and makes way for a number of geopolitical and macroeconomic issues.
This material is communicated on May 6, 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.
