Weekly Market Outlook December 2, 2018
“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy.” – Jerome Powell
Pfäffikon SZ, Switzerland – “Just below” were the two small words that pushed the S&P 500 up last week. Fed President Jerome Powell is not the best communicator with the market. On October 3, he put investors thinking who then massively pressed the sales button on October 10. The S&P 500 lost 5.2% in 24 hours. Now, Powell changes his tone, which is good for the stock market. Perhaps only one interest rate increase will be implemented in 2019, or maybe Powell will do nothing next year.
The S&P 500 recovered significantly and is now fighting again with the 200-DMA. If the S&P 500 breaks through this barrier, a month-long boom might occur. This would also fit seamlessly into the current era. Meanwhile, the US and China seem to get closer to each other in their trade war; most attention will be paid to it on opening Monday.
The coming week, investors are looking forward to macro figures, and in particular the job figures of the US. Wednesday, the financial markets in the US are closed due to national mourning for the funeral of George Bush senior.
This material is communicated on December 2, 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.
