Why are Poles still reluctant to buy into equity funds? – Treasury bonds currently offer almost 6% yield, and corporate bonds around 8%, and such rates of return are satisfactory for a large part of clients – points out Michał Szymański, president of VIG / C-QUADRAT TFI.
– The fact that stock markets in Poland and Europe are gravitating upwards is a very positive signal – emphasizes Michał Szymański, president of VIG / C-QUADRAT TFI, whose guest we are hosting in the Bankier.pl studio during the 25th Capital Market Conference. – Let us remember that for a long time the American market recorded much better rates of return than other markets. Our Polish stock exchange also lagged far behind in this respect. Currently, however, in Poland and Europe we are in a period of catching up on rates of return – notes Szymański.
In his opinion, this is due to several factors. – On the one hand, stagnation in Europe has been going on for a long time and it is natural that after stagnation or recession comes recovery. There are also other, even more important reasons. The European Central Bank is systematically lowering interest rates and wants to continue doing so. It has room for this, because there is not much inflationary pressure visible in Europe. Such actions by the ECB strengthen the economic situation – says Michał Szymański.
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– We also have the prospect of a large fiscal stimulus both at the level of the whole of Europe and of the governments of individual countries. In part, these are to be expenses directed to the European arms industry, which stimulates the economy – he adds. – All this together creates a good picture of the market for the near future – emphasizes the president of VIG / C-QUADRAT TFI.
When can Poles' money flow more freely into equity funds, and not just into safe bond funds, as it has been doing so far? – Equity funds undoubtedly need to build their credibility among clients. They need to show that rates of return can be repeated over a longer period. It also seems that distributors of investment products need to be convinced that it is worth offering products not only based on debt instruments, but also slightly more risky ones – indicates the president of the VIG / C-QUADRAT company.
– Another element is the fact that bond yields are currently relatively high compared to history. Treasury bonds currently offer almost 6% yield, and corporate bonds around 8% yield, and such rates of return are satisfactory for a large part of customers.
What is worth investing in now, stocks or bonds? – Both asset classes. The composition of the portfolio should depend on the investor's age, financial capabilities, risk tolerance and personal experience. Stocks are worth having. They have proven their “usefulness” as an investment over the past few years during the period of high inflation. Between 2021 and 2024, inflation totaled nearly 40%, and equity funds offered in Poland gave a rate of return of 50%. At the same time, debt funds brought rates of return from a dozen to twenty-something percent – emphasizes Michał Szymański.
What do the high dividends offered by WSE-listed companies indicate? – This shows that the companies are in good shape. They have high cash flows and can afford to pay dividends. A high dividend is also a signal of how the boards assess the prospects for the near future. If they were expecting any problems, we would not be seeing such high dividends – says the head of VIG / C-QUADRAT.
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