Weekly Market Outlook September 30, 2018

“Investing without research is like playing stud poker and never looking at the cards.” – Peter Lynch

Pfäffikon SZ, Switzerland – Investors were under the spell of Italy’s debt and fiscal problems last Friday. The situation around Italy should not be a surprise for investors. Investors –quite rightly– are no longer interested in Italy, which would have to be heard by Italian policymakers. In general, the rising interest rate is, in any case, a point of attention.

According to the mainstream media, rising interest rates are bad for equities. However, the practice is different. In 1974, it was the last time that shares declined in a period where interest rates increased. However, in 1974 there was the talk of the well-known oil crisis. The probability that the S&P 500 will upwards decouple itself from the European equity spectrum is considerable. After all, the American economy shows little signs of weakening. The so-called trade wars cannot change much now and are an issue for the longer term. The fact that rising interest rates often coincides with a period of strong growth currently counts for the US. The S&P 500 closed 0.4% higher in September.

In the coming week, the agenda is partly filled, and the sentimental investor will drive the market.

This material is communicated on September 30, 2018 by 1324 | 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 1324 | by Thirteen Asset Management AG and may not be reproduced or otherwise disseminated in whole or in part without prior consent from 1324 | by 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.