A rollercoaster ride more shocking than thrilling

The situation on the stock-exchanges now resembles something of a rollercoaster ride. Sharp diving corners, followed by slow climbs upwards, only to end with a terrifying plunge into the abyss once again. Since the summer holidays investors have been beset by uncertainty. And the problems are not only afflicting companies but also countries. This includes the lowering of the credit rating of the USA, as well as the increasingly inevitable bankruptcy of Greece. And now Italy's debt rating has also been downgraded, reflecting (or maybe adding to) the problems across Euroland. How can anyone invest in such times? And does it even make any sense at all to do so? However, Wojciech Pisz of Cushman & Wakefield actually convinced me that the situation on the property market is not as bad as it seems. The investment market, particularly in Poland, continues to grow. Funds are likely to spend around EUR 2 bln on Polish properties this year. In the context of the global turmoil, this is not an amount to be sneezed at. So should we be worried? In his interview featured in this issue, Jack Foster of Franklin Templeton Real Estate Advisors believes that the warning signs should not be ignored. He also uses the opportunity to defend the good name of credit ratings agencies, as he believes they play an important and positive role. In his opinion they can nudge governments into taking the necessary action. But will this actually happen? In the case of the US, this seems unlikely. Jack Foster feels that everything appears to point to another lowering of the US rating. So are we in for more shocks? Unfortunately we do not have a crystal ball to gaze into.

Radosław Górecki
Deputy Editor