While 2022 saw a decline in the value of stocks and some bonds, and one of the few winners (from the point of view of a Polish investor) was the US dollar, which is seen as a “safe haven”, this year saw a comparison of rates. Coming back looks completely different.
This year's winner is definitely stocks. First of all, Polish (WIG has gained 37% at the time of writing this comment, rather than recoup losses from 2022), but also, for example, American. Gold has clearly revived. as well as bonds. Those with fixed interest rates are almost 13% in 2023. Positively after 5%. Losses in 2022 and floating rate bonds yielded nearly 10%. profit. However, the main loser is the dollar.
The rest of the article is below the video
See also: Psychologist of millionaires: “The farm survived in Polish companies – Jacek Santorski – Business Class #9
Investors have a lot to celebrate
What is the moral of these events? First, it pays to use amortization periods like 2022 to accumulate assets like stocks or bonds. In the chart we also show (orange bars) that Stocks and bonds deliver a solid rate of return over the long term, and periods of turmoil are only temporary. For example, take Polish small-cap stocks – over the past 20 years they have generated a return of 13.3%. average per year. and i.e. American values The annual result was 9.7 percent.
What should investors expect in 2024? I would guess that the results will not be as impressive as in 2023, which was largely a recovery from the previous, relatively weak year. Investors have been happy this year taming inflation – However, this fuel for the bull market is running out. But even results much closer to the long-term average (orange bars on the chart) will not disappoint.
Tomáš Hondo, Quercus TFI Senior Economist
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