Fair to moderate

Unfortunately not only the weather in Poland in July was at most moderate, so were moods on the Warsaw bourse The beginning of July was quite good – the WIG reached its historical highs, but some signs were interpreted as the beginning of a bigger correction (see below). Good news was coming from the world major markets – the Dow Jones reached a psychological level of 14.000 pts, Ben Bernanke (president of the FED) announced that the U.S economy will grow faster next year and left the inflation forecast unchanged. However, he did say that the housing market will remain sluggish for some time and could stymie economy growth. In fact, a worsening situation on the U.S. house market was the main trigger for the global sell-off that took place on bourses around the world at the end of July (one has to remember that the situation on the U.S. house market is the lodestar for the whole U.S. economy). The main question is whether this represents a major correction, about which anal