For a long time, we have been stating that the Sell-off in both the Ruble and the Russian stock market provided the astute investors with a great long-term buying opportunity. The Chart below is clear proof that the outlook is improving and that the Sanctions that the West imposed on Russia at the behest of the America was a stupid idea, but more importantly, it has made Russia even stronger. The chart below is proof of this, inflation is down over 50% year over year. Translation things must be getting better.
There is a saying that one should buy when blood is freely flowing in the streets and that appears to be the case now. Thus, prudent investors would do well to compile a list of stocks that they would like to open positions and slowly start committing funds to some of these plays. One great way to play the Russian market is via ETF’s such as RUSL, RSX, ERUS, etc
We will take a quick look at RSX
The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors® Russia Index. The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The Russia Index is comprised of securities of Russian companies. A company is generally considered to be a Russian company if it is incorporated in Russia or is incorporated outside of Russia but generates at least 50% of its revenues (or, in certain circumstances, has at least 50% of its assets) in Russia. It is non-diversified
It will face resistance in the 16.00-16.50 ranges, so it would make sense to wait for a pullback to the 13.50-14.00 ranges before committing new funds
Other stories of Interest:
How to Profit from Misery & Stupidity (March 4)
Religious wars set to Rip Europe Apart (March 4)