Russia appears to be one of the cheapest markets on the planet today. Yes, the planet is generally overvalued, but the discount shown below is difficult to ignore. It becomes even more difficult to ignore when one considers that the median age amongst middle eastern oil producers ranges from 18 to 29 with up to 40% of the population under 15 years old. With food making up anywhere from 25% to 50% of this young population’s total consumption, those hoping for a quick fix to the “stone throwing” in today’s age of instant communication are likely to be disappointed. On the other hand, those looking for alternatives to middle eastern oil, might look to Russia, the world’s largest oil producer, and the Market Vectors Russia Fund (RSX) with 37% of net assets invested in the oil and gas sector.
Fools!!!!
Russia is just one flashpoint away from another revolution.
That isn't a problem in itself, however, afterwards, all of the oligarchs will be unwound and their thefts reversed.
You will be left holding your dick in your hands. Not even paper to wipe your ass with.
Why fuck around with Russia? There are Canadian versions of all the Russian resource plays, except GAZprom. I mean, really, on a risk reward basis, are you going to pick a Russian Nickel producer or a Canadian one..
Just checked investment advisors for RSX ,Van Eck assoc. and got nowhere. RSX at recent highs and no dividend and no institutional ownership and no Russians on Board of Van Eck . Stricktly an index. Stock suggestions should be accompanied with more info falek pema, or is it a state secret
What a load of crap.
Emerging markets my ass!
These countries are doing just fine. Just because they don't have the same social welfare and wealth redistribution schemes that North American and Europe have doesn't mean that large money is not being generated. Someone is pocketing the social money and convincing Westwerners that they are somehow poor.
Also, been there, done that.
In the eighties when CCCP fell I invested in RU countries.
1 year later - no companies, no money, no people. I think it was about that time that the oligarchs started to rise.
I would not give you a rat's ass to invest in RU. The corruption is beyond what anyone can image. Even the supply chain is pilfered by the owners! Example: company needs 24 of part X, delivered to rebuild shop to complete overhaul on machine Y. By the time the pallet of parts arrives to the shop floor the GM has taken his 4 pieces, the materials manager his 3, the maint manager his 3, and the supervisor his 1. So, another order must now be placed for 24 more. Then the management will sell the parts back to the company.
You will pay for this from your investment in RU companies. Good Luck
Its the other 63% I would want to research. Most Russian manufactured products are still sub-standard with little export potential, but would be more interested in 100% Russian oil ,gas and other commodity investment. Any suggestions falek pema?
Spocebo Tovarisch
Planes, tanks, subs, missiles, nuclear reactors/fuel, aluminium, palladium (et. al precious metals), cars (inc. Russian-built foreign brands), wheat, fish....
Little export potential?...Russia exports just about everything & anything it can & is falling over itself trying to ramp exports ever higher. And everyone's buying.
Dont forget Modells and Hookers.
I think geno was talking about consumer durables. Almost everything you listed is either military, or raw materials, except the nuclear reactors. On the subject of cars, since they're foreign brands, a chunk of those profits flow to the owner of the brand.
Seriously, when was the last time you heard of someone outside russia asking for a russian product, except of course the AK-47 (which is made all over the place anyway)?
Yup, fair point re consumer durables, but their economy just isn't, for better/worse, geared that way. You could make a similar point about the Australian (or even Canadian) economy, but it has no bearing on the quality of their exports as a whole.
What I took issue with was the apparently flagging exports due to crappy products nobody wants to buy. That's just not the case IMHO.
Russia's not without some serious problems that act as heavy anchors on its growth (where do I start?!), & thus it's a far riskier bet than pouring your gold into Australia for example. But, assuming they can successfully navigate their way past those hurdles, the upside far outstrips Oz's potential.
Whether that risk/reward is worth the punt, well that depends on your particular calculus I guess. Personally speaking, I've been in since the '98 default and I sleep reasonably well...most nights...
The problem with Russia is that they're a bunch of goddamn crooks. They don't even pretend to be straight anymore so no one wants to put any money in them. Instead smart sheople prefer to be lied to and buy IBM and some of the other holey (purposely misspelled) stocks. It just depends upon how you want to get it stuffed up your back if your a good sheople. If not, just buy silver and gold on the breaks. In which case then, your Revolutionary material.
Russia has one big problem : Putin mafia land. Get round this massive deterrent to any consideration of investment and all changes. But it runs so deep right now...all is tainted.