A “battering” for Polish investors
Central Europe's new retail investors are learning that stocks can also go down. And Poland - where almost 10% of the population invests in funds - has been especially rattled.
Central Europe's new retail investors are learning that stocks can also go down. Since 2000, the number of small investors has rocketed as strong growth has lit a fire under equities. But thanks to the recent global turmoil, the region's new investors have now had "their first real battering", says Vanessa Gera in the International Herald Tribune.
In Poland, where by September 2007 the number of fund investors jumped to 3.3 million, or almost 10% of the population up from 2.4 million in 2006 funds were more exposed to equities than in neighbouring countries, so investors are especially rattled. January's withdrawals reduced the value of local funds' assets by around 8%.
Meanwhile, economic growth is solid, but set to cool from last year's 6.5% as interest rates rise to temper above-target inflation. Analysts reckon higher rates are set to slow the property market and hence bank earnings, while overall corporate margins have been falling, notes Thomson Investment Management news.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
And "the world economy is not supportive", as Tomasz Adamus of Credit Suisse says. So while the long-term outlook remains encouraging as the region converges with the EU, Polish stocks look likely to struggle this year.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Nationwide cuts mortgage rates as they dip below 4% for first time since February
The building society’s cheapest deal is now priced at 3.99%. Whether you’re buying or remortgaging, we look at whether rates could drop further in the coming months
By Ruth Emery Published
-
Pressure grows on Labour to remove the two-child benefit cap - here’s everything you need to know
The cap, which was introduced by the previous Conservative government, has been criticised for worsening child poverty
By Chris Newlands Published