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PNC Chief Asset Management Group Chief Investment Strategist Bill Stone on how Poland was able to avoid a recession and how investors can profit from ...
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Now before the break we asked you which country is the only member of the European union -- which their 27 members to avoid a recession during the economic crisis so far.
And no it wasn't -- for those of you tweeted sweeten.
It is up out of ended.
PNC asset management group chief investment strategist -- don't do that awhile ago so he's got back from around -- prop plane.
To seek out but to seek some risk and returning as a strategy to help you make money on poll of the ball places bill I mean I'm thrilled to have you here.
Tell you what you learned would you got your boots on the ground in Poland.
Well you know certainly interesting to me in terms of I'd actually never heard the maybe I should of this saying the green island because obviously Poland and on an island.
-- but that's certainly what it earned in terms of economic terms.
I think we learned a lot in terms of the fact that they were supported by good to.
Domestic demand they're not is dependent on exports as some other their neighbors.
I another interesting fact is just because -- I think they're fiscal discipline.
They were able to interns -- some more fiscal stimulus but not really dig themselves into a -- poll.
They really even after their fiscal stimulus.
Only have a debt to GDP of up less than 60% so they have some room there I think.
Another part that was interest thing.
When you mentioned financial crisis their banks really -- -- in hearing into a financial crisis so on the whole so that I think really help their economy as well.
Stunning to me -- this is great this is why we have people like you that to show us these things you have obviously been flagged on this.
These are some of your points that you just articulate about what show for example the stock market there.
-- for years -- the stock market has gotten slammed down about 45% compared to -- the S&P 500 say for example which is down about 7%.
Up looking at GDP growth this is where you find the interesting aspect here.
There it is vs the S&P which is of course done much better but looking the GDP growth for 2012 year over year.
-- -- looks to stand to grow at about 3.5 percent whereas the US is it.
Somewhat of a measly 2%.
European Union.
Barely clinging to positive territory 110 of a percent of growth that's about to just completely slipped so -- tell.
What -- to about this.
We're -- again you know it.
Yeah I mean a couple things just day you know -- -- -- -- people in the business in terms of going over the to learn.
-- I think a lot of it was the learn more about what exactly they were doing in order to really eight -- said it's amazing that.
Among all the EU countries they were the only ones to avoid it and I think you've learned some things in terms of of your own -- thin and really the fiscal discipline that's involved in it.
I think an interesting part is -- -- we've talked so much about it with the eurozone crisis.
Is they do still retain their own currency they have the police lobby -- I do think that in some respects that helped cushion.
Some of the blow because -- -- depreciate when the economy falls.
It's kind of that's the worry that -- and it alienate any Greece can't be or one way that -- kind of lose their labor competitiveness is because they can't devalue anymore euros policy stuck with the Euro for Tom there's good things about the -- so I think that did help them as well.
Well indeed and and while while they do have just a tiny bit more inflation than is is palatable for that tire sounds nothing like what they saw back in 1992.
When we get to be every day investor bill teach them how they can get in on this in the relatively fair and easy way.
Well there are a couple of ETFs out there that you track the polish market.
I will say you know we we not currently using them at that time we are looking at them I'd -- the issue in terms of of the polish should invest the bull market.
Is that it at least in the -- -- about 35 to 39%.
Depending on which one you look at.
Is it is it in financials which you know is image is actually been a strong suit to Poland.
But it is one of those things where there are some risk inherent in financials and Poland I just because of the small country.
And just have that much of exposure to one sector I think ads did to the mix but it's worth taking a look at.
Anyway we're showing the investor will be iShares MSCI Poland digestible that -- again -- right 39% financials 19% basic materials.
And now let's take a look the market vectors Poland ETF the ticker symbol PL and the industrials.
Look industrials and poems supplied Germany and we know Germany is is relatively.
Decent performer here so and and let's not forget.
Poland is a co host of the -- 2012 soccer tournament.
That always generate some action doesn't that.
Yes I mean that was certainly part of their infrastructure build you particularly last year and and frankly we saw the infrastructure build right up until right before the yet.
-- -- a minute see you -- that you mentioned it.
Their largest trading partner in terms of exports is Germany which is definitely another strength that I'd -- I didn't mention before.
They'll -- just back from Poland how -- the -- I thought -- it always good you know you can't go wrong with broad -- -- You know nothing nothing like -- Visa and polish beer for me and I way.
I -- -- -- in Parma Ohio right south of Cleveland thanks bill good to see you banks.
Built on PNC asset management group chief investment strategist looking now at investing in Poland will put all of his picks well all of the -- that are related to what he thinks.
Mike do well on our FaceBook dot com slash --
