Back to reality?

May was far from boring – that’s for sure. In the first ten days, indexes hit record highs almost every day  After a nearly nine-week long rally, one might have thought that investors had lost contact with reality by buying so much, even taking into account the fact that the economic fundamentals in Poland are still very strong (in the first quarter, GDP will probably reach 5 pct). According to analysts, one of the reasons behind this amazing rally was the steady inflow of capital to investment fund companies, which forced managers to purchase more, resulting in a constant growth in prices. But at the beginning of May, the first signals were given from foreign bourses, and after a slump in world prices of raw materials, the situation also affected the WSE. Moreover, emerging markets investors were not willing to take any risks, as interest rates went up in the USA. All of this shows that the WSE is very much a part of the global market and is strongly influenced by global