City of Lodz, Poland. View of the White Factory. whitelook
Introduction
The Polish equity market has risen over 50% since the last calendar year quarter of 2022 till today. In comparison, the S&P 500 Index (SP500) has gone
EPOL: Inexpensive But Limited Bullish Tailwinds
Summary
- Since October 2022, the Polish equity market has outperformed the S&P 500 by 33%. Will it continue?
- iShares MSCI Poland Capped ETF has headwinds to its major energy exposure.
- Weaker banking metrics also drag back EPOL.
- Technicals also suggest a downside direction for EPOL.
- But valuations are cheap, with EPOL trading at mid-40% valuation discounts to the broader emerging markets group.
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