The Russian Stock Market as an Emerging Market Play

Warren Buffet: “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

One of the most fearful stock markets in the world now is probably the Russian stock market.  It’s hard hit by the recent plummeting oil prices and sanctions by the West for its Ukraine adventure.  Both its stocks and the prices of ruble are hitting new lows.  But then, make no mistake about it, the R in BRICS is still a resource rich country with its huge land masses and untapped potential.

So, the million-dollar question is: is it time to be greedy?  Would you grab hold onto a falling knife?  Why won’t a falling market continue to fall?  My approach is that yes, the market is uncertain, but, it’s already high on the value-play list; so, I joined in the fun and bought some.  If Russia goes up, I’ve some extra pocket money; if it tanks, which it might, it’s nothing major on my financial well being.

This web page here listed Russia’s Shiller P/E as 4.6.  The author even predicted its expected return to be 16.9%.  I think that is a pretty bold assertion, but then if Russia manages to fix its problems, why not?

2 thoughts on “The Russian Stock Market as an Emerging Market Play”

  1. I’ve never had much luck trading emerging markets even though I think they have potential. This winter I was trading Russian ETF’s and that was actually really successful, but it was based on a catalyst.

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