Russia: stay away or time to play? Tuesday, August 19, 2008
Posted by ei-forum in Investing.trackback
Just a short post on recent events in Russia to get you thinking…
We have all heard about the recent news with Georgia and revamped concerns about the stability of Russia and it’s attitude towards foreign investors, people who challenge the regime, etc, etc… but does this justify the recent sell-off – also linked to Oil?
Naturally, the above chart is not a big surprise, especially taking into account that about 50% of Russia’s market capitalization is in commodities but does the geo-political risk and commodity sell-off warrant the fact that the RSX (ETF tracking the Russian market) has wiped out all of the YTD performance and that it is back to about September 2007 levels?
Most observers usually say that things in Russia are never as good as the look in good times and usually not as bad as they seem in the downturns…. the Enterprising Investor with a long-term horizon should try and profit from this by targeting an interesting entry point.
Please read our disclaimer.
Stumble It!
Explore Investors Blog Network
i agree. ten years ago when their economy crashed it was a good time to invest. this time it’s even better