Dear Investors,,
Another year is behind us. 2016 was rich in many events that had a significant impact on capital markets and the valuation of different asset classes. Below you can find a list that we compiled that presents the most important factors which influenced the equity and fixed income markets in 2016.
Another year is behind us. 2016 was rich in many events that had a significant impact on capital markets and the valuation of different asset classes. Below you can find a list that we compiled that presents the most important factors which influenced the equity and fixed income markets in 2016.
FIXED INCOME MARKET
Positive factors
- Improved indirect tax collection in Poland.
- Subdued GDP growth.
- Deflation was present in Poland for the majority of the year.
- S&P agency lowered the rating for Poland.
- Stronger expectations of interest rates increase in the USA.
- Tapering of ECB quantitative easing policy.
- Unexpected victory of Donald Trump in US presidential election.
- Adoption of the act on lowering the retirement age in Poland.
EQUITY MARKET
Positive factors
- Preliminary PPF (OFE) reform proposal better than fearful expectations of investors.
- Most global stock exchanges continued to grow.
- Low interest rates.
- Weak zloty increases competitiveness of Polish economy and supports growth for exporters.
- Fiscal stimulation through e.g. 500+ government program.
- Political risk increase.
- Investments slow-down adversely impacted the GDP growth in Poland.
- Poor condition of some equity market segments (mainly large cap companies).
Important information – read carefully
Source of data- Bloomberg. This material is intended for promotional purposes only; the lists included herein are for illustration purposes only and do not constitute forecasts. This document does not constitute an offer within the meaning of the Polish Civil Code or a public offering within the meaning of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organized Trading, and Public Companies, investment advice, any other advice or recommendation with respect to the purchase or sale of any financial instruments, nor any recommendation or suggestion concerning investment strategies. The factors that have influenced the capital markets are results of its authors contemplation and although the authors exercised due diligence while compiling the list they and Legg Mason TFI S.A. cannot guarantee its completeness and correctness under any circumstances and disclaim therefore any liability for any actions taken as a result of the use of information contained herein and in particular for the damages suffered. Legg Mason TFI SA, which manages Legg Mason funds, operates on the basis of the decision of 18 June 1998 issued by the Polish Securities and Exchange Commission.