The US Dollar Index has been on a torrid rally over the past two months. Even before the US election, the greenback was on the ascent, pressuring ex-US stocks. Shares of European equities have come under particular pressure, with
EPOL: The Surging Dollar Weighs, But Value Remains
Summary
- The iShares MSCI Poland ETF is rated a buy due to its low 7.1x P/E ratio and strong 21% EPS growth rate.
- Despite recent underperformance and high volatility, EPOL offers significant income potential with a 5.0% yield and a diversified sector exposure.
- The fund faces risks from currency fluctuations and sector concentration, particularly in Financials, but has technical support above $20.
- Seasonal trends suggest caution entering early in the year, but the current valuation and technical setup present a favorable entry point.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.