Mobius: expect growth in the Stock Exchange – Parquet

Mark Mobius expects growth on the Stock Exchange

source: Bloomberg

I expect growth on the Warsaw Stock exchange, because the US market is now less attractive to investors and they are looking for new markets for investment. Next year, Polish GDP may grow by 4 percent. – Said in an interview with PAP president of Templeton Emerging Markets Group, Mark Mobius.

“I think one of the main reasons for the recent declines in the Warsaw Stock Exchange is the issue Brexitu. There’s a big fear is that Brexit – if from him will – will have a negative impact on the entire European Union. Touches is also Poland. another thing is the issue of downgrades by rating agencies. this is not so significant, because only one agency did, but others pay more attention to Poland. it is also has an impact on investors, “- he stressed.

In his opinion, Polish stock market rebound, however, because the current US market is less attractive for investors. “The American market has reached a very high level and we are now seeing declines, the US dollar has become less attractive. As a result, more money will go to emerging markets and will benefit the Poland” – he said.

Mobius does not also fear the problem for the Polish economy may be deflation. “Deflation is also in a sense a positive effect, because it shows that the economy becomes more productive. If productivity increases, of course, inflation is falling and may even turn into deflation. This means that it should be extended productivity. Polish companies onto foreign markets and become more productive, and they know how to move the productivity of other countries, “- he said. In his opinion, in 2017. Polish GDP may grow by 4 percent.

PAP talked with Mobius during the Sixth European Financial Congress in Sopot.