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Russian Stocks Enter Bear Market As Ruble Hits Record Low
Russia's RTS Index has dropped over 20% from its post-Sanctions 1.0 highs in June, officially entering a bear market. The Ruble continues to slide, breaking above 39.50 against the USD - record weakness. Whether it is US/EU sanctions "costs" and/or merely EM risk-off hot money outflows is unclear, but what is clear is that Russian stocks are extremely cheap...
Chart: Bloomberg
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What part of all fiat will go to zero don't people get? All oligarchs, especially Russian oligarchs only care about one thing... ...power and control over real resources, including the human kind.
Same as it ever was...
Meanwhile, US markets slowly melt up to green for the day....
The Magic Plunge Protection team at work....
Bear Market. Well what do ya expect it is Russia.
There is going to be some nice value there. Ya know, that shit that the fed has declared illegal in US markets.
da
Bear is normal to Russia
So... Russian markets are all Bear, and USSA markets are all Bull.
How can you lose? Let me count the ways...
So much for ZeroHedge's ( A Russia Today Subsidiary) thesis that sanctions against Russia are NOT hurting them. And by extension the seemingly infallibility of Prince Vlad The All Powerful.
Your straw man argument is false. ZH never stated that sanctions would not hurt Russia, but that they are counter productive, and in the longer run will benefit Russia by lessening dependence upon a hostile west for key technologies.
Take a good look at the european bourses and notice how they are all in the red, YTD. Moreover, nearly all currencies are significantly weaker against the USD. The cross rate between the Euro and Ruble, a much more important indicator for Russia is mildly negative, within normal long term market fluctuations.
"You're punishing the Russian People for what is a problem of Putin." That would be me...disabledvet (and yes LawofPhysics I am a vet too) who said that.
The Tylers have gone out if their way to call these sanctions as "great news" as far as Russia is concerned.
Obviously instead we have something apocalyptic brewing here instead.
Hence perhaps the now obvious question to ask (and answer) is "what happens if Putin's Russia collapses?"
Redrawing borders in the East can be met with...well, redrawing borders in the East.
Siberia..."new Country"...comes to mind.
The sanctions wil punish all involved in the trade, the exchange of real goods and services not the Wall Street/City derivatives benefit both parties.
While I think the West needed to take action against Russia to defend their/our interests, my biggest worry is how Russia will react should their situation deteriorate rapidly. It was punitive sanctions against Germany that allowed the rise of Hitler and led to WW2 and Putin has shown himself to have exceptionally poor judgement when it comes to inflaming situations.
At least I admit fully that as an AMEDD officer I contributed to America maintaining control over certain strategic and essential resources. it is, and has always been about maintaining power and control over resources, period.
Americans still do not know what real poverty looks like, especially when you take a hard look at the way 90% of the people on the planet live.
Colonel Potter of 4077, is that you?
I see you know even less about Siberia than you do about rest of Russian Federation...if that possible
Siberians are good people...Siberian Ladies make best wives of any.
Last place to pick a fight
yeh big claims of Siberia protests...one turned out to be one guy...media really mislead on that one...
Yes, the land of stolen American technology will undoubtedly profit from being cut off from the honey pot.
No Exxon = no Kara Sea oil. Why else do you think Putin allows them to prowl around his territory? Because without American know-how, they got nuthin.
Sure, the world could not survive without american can-do know how, LOL. /sarc off
The Russian will develop Kara, and will obtain/trade/steal/borrow whatever technology they need to make it happen. Exxon is not the only game in town.
What's so fucking special about Exxon "technology", and why do you think that nobody else can do it ? Technology is not something locked in a vault and used with top secret clearance. I'm pretty sure that both the Russians AND the Chinese have in depth knowledge of all the western "technology" they could think of. It's just a question of building the hardware for using it. Which is exactly what they'll do. Typical American arrogance at work... to think that they would be the only ones to KNOW stuff. Actually, Americans tend to know shit, latelly ! How you checked how much of your American "technology" has been developed and comes from OUTSIDE America, in the last 10 years or so ?
Russia could end violating Exxons patents. The horror! The horror!
Those patents have been violated a long time ago. They've already given birth, by now...
You think, LOL :-) It would be fun to watch Exxon try to enforce the patents in Russia. They will likely ask for a back door cut of the action, instead.
Russia's "Long Run" is fueled by oil and economic ties with China which is fueled by both internally generated Fiat and Fiat given them by the U.S. due to our rampant consumerism that can only be slaked and afforded by ever cheaper iShit.
Cheap oil is going bye-bye......in fact....it's already gone. Thus the demand for it, because it is not affordable enough to keep the Consumer Utopia that we know now, is going down as well.
China's miracle is nothing but a Fiat Poniz driven illusion, also in large part, because of Cheap Energy which is going bye-bye even as we speak.
ZeroHedge should know this.....for after all their motto is......"On a long enough timeline......."
Sanctions hurt everyone. That's what ZH articles explain. Not the fact that Russia is somehow immunie to them, but that like a Newtonian force, it exerts equal pressure in both directions.
In the end fiat is fiat. There's no better or worse fiat. All have the same end destination and the world's banking system is so intertwined that one major crash is likely to have cascading effect, bringing down all there it.
If it's not backed by the Fed/GS, then it better be backed by real assets, arms and WMDs.
Oh, wait...
Interesting to think of exchange rates in terms of warheads.
I thought when you were winning the race to debase, your stock market was supposed to be rewarded by hitting record highs. They must be doing it wrong or something.
Butt, Butt, I thought Putin "holds all the cards."
Putin's still the little bitch in this game of cards. He did a great job with Ukraine, but still has to play it very carefully.
news out of the caspian summit is somewhat interesting. putin appears to be playing it very carefully.
Putin wields a lot of direct power in Russia, the question is what are his limits. You can imprison some people but eventually you run into people you can't, then we'll see how it goes down.
"what is clear is that Russian stocks are extremeley cheap..."
And likely to get cheaper.
I love the smell of BTFD in the morning. Smells like... victory.
To broker: Sell Small Cap, buy Russian stocks!
Captain, your advice sounds quite illogical.
The Putanians have already fired off their largest propaganda phasers on a weekend in an apparently futile and last ditch attempt to halt the destructive force eating away at their superstructure.
The Putanian officers are all desperately manning the gold bullion lifeboats and frantically exchanging all ruble-denominated assets for anything of tangible value before they drop even further in value.
Given these conditions, your suggestion that we ally our fortunes with theirs at this time leaves me no alternative but to suggest that an evaluation of your medical and mental condition is imperative.
Doctor McCoy, please report to the bridge.
No, I'm merely suggesting that (1) we have Currency Wars between two fiat currencies, where one of them (the USD) is using its GRC status to beat up on the other, and (2) that a RUB and Russian stock market that's temporarily weaker against the USD, is a Buy, Buy, Buy opportunity. IOW: trade paper assets for Real Assets, aka shares in Real Enterprises.
Note that both currencies are "fiat", i.e. they are "elastic". That's like comparing two sets of bungee cords, and claiming that one (the USD) can stretch further than the other. It's the Wrong Argument to have, because it's like asking "which Bookie Game is better"? Both are Bookie Games between CBs, but one Bookie is feeling more vulnerable than the other. Eventually, one Bookie (the Russian CB) may have to exit the Game entirely, and create a New Game: an Honest Game with Honest Money. And smart Oligarchs (whether Russian or American) will eat dumber, weaker or panicked Oligarchs: Big Fish eat Little Fish and Wounded Fish. Same as it ever was.
Note that that FX values are only meaningful if Russia needs to swap its bungees (RUB) for American bungees (USDs)... for real stuff it needs to buy in USDs. Unlike the US, given that Russia has no Foreign Debt that must be serviced in USDs, it does not impact its Federal Budget. And Russian salaries/wages are paid in its own currency, so this too has no effect on its Federal Budget. Only things that must be purchased in USDs abroad are affected. To quote: "It's pure logic".
Mr. Spock, please report to the Bridge.
Buy away, meanwhile I'll just sit here watching the show....
Aaaaaaaaaaaaand............who cares about russian stocks?
Putin doesn't
Russian stock market is 100% controlled by Putin.
Its value to Putin is zero
Yea I suspect Putin doesn't really give a shit, westerners want to project their stawk-centric program where only stawks matter.
Where are the bodies ekm? I want to see some high level bodies!
Imminent.
Early. And by a ton.
Race to debase means that flow of REAL GOODS crossing borders gets diminished.
Countries want to pay with printed money in exchange for real goods
Then.............who will produce the real stuff then/
World is abandoning USD, as I projected it would happen if they did not unwind QE
Eventually, somebody will lose his mind and start shooting
No dead bodies if they surrender
My projections are based on somebody doing something to defend USD from being dumped as world currency for world trade
If what I say does not happen, then world will accelerate USD avoidance and poverty will expand in USA and western world
Law: here is some Ukraine mass grave porn to satisfy your urges to see bodies. Brought to you by the good folks in the State Dept, Hunter Biden, various oligarchs and, of course, a great big shout out to the Ukie Nazis.
https://02varvara.wordpress.com/2014/09/28/vsn-finds-another-mass-grave-...
ekm, project much?
For a guy who's supposed to be smart, you sure are holding it back.
oil as low as $20
S&P as low as 400
10 year yields as high as 6%
Timeline:
It should have already happened.
It did not, hence world is abandoning USD
Exactly as per what I projected
Your "projections" mean shit ! However, you DO sound quite delusional...
precisely
QED !
Tyler's, when are you guys gonna do an article on what the global asset prices (stock markets, FX exchanges, etc) will look like as the de-dollarization process continues???
Maybe we could get some honesty and context then, instead of this Wall Street propaganda non-sense that your currently putting up with this article!!
The reality of what the China/Russian (BRICS) economic alliance means, is when the USD dies as the singular world reserve currency, there will be a massive global "repricing" of ALL assets on the planet! So unless you guys think that's NOT going to happen, which I would find odd considering you posts two dozen articles a day in support of that happening, why don't we start talking about things from THIS context?
The ruble or yuan or at this point the Russian/Chinese stock markets are canaries in OUR coal mine NOT the Russians or Chinese! The Russians and a Chinese are awash in physical wealth, manufacturing and nstural resources, that when "repriced" will provide their financial infrastructure plenty of stability and collateral, the West and US on the other hand, has nothing in this regard, and is currently holding a giant bag of global shit (debt)!!
They know their stock markets and speculative assets will have to be completely stripped down to the bone and repriced, as this process continues, they welcome it, yet WE think it's their demise!!
Lol
Our hubris and delusional behavior in the West has no limits!
I think that is what the graph is showing, the trajectory shows drastic change is now underway. That being said, I'm sure the US and the FED have plenty of dirty little tricks to manipulate things as they see fit.
wwxx
Get to work Madame Chairperson Nabiullina .
Elvira Nabiullina long member of inner Putin Administration.
Tatar heritage
Free the Tatars!
The ones I know are more free than you.
They Volga Bankers
There's $2-2.5b POMO today. The dump and pump is right on schedule.
Dow 30 17,033.50 17,113.15 17,121.00 16,933.50 -79.65 -0.47% 14:50:52
Well that explains it. Thanks
Well if oil is dropping..and Russias econoy is 80% oil....I guess it should go down.....and by the way..that new oil find up north is not $80 a barrel oil...its more like $140 a barrel oil for it to come to market....its tough working up in that cold....metal just breaks...
Exxon said $50
youngman we got a printing press and we can print as much as we want .... no one cares about $140 or $1400 per barrel as long we get the real stuff .... the oil that is ... you dig?
talking out of your arse again. Exxon said 50 bucks.
How do you know Russian stalks are 'cheap', just because they're somewhat lower than before? So anything less than the highs are low low prices?
"So anything less than the highs are low low prices?"
So close....
"Even the all time highs are low, low prices"
Maybe you haven't noticed but the Kremlin pays the Tylers to slurp on them all day. When Russian stocks go down their cheap and Putin holds all the cards blah blah blah blah blah
Without knowing who the Tyler's are there's no way anyone could say for sure what their motives are but since we'll never get to know who they are, what their backgrounds are, and who is paying for all of this I guess we'll just have to be comforted by the fact ZH is owned by ABC media (per the bottom of the homepage) and when Russian stocks go down their cheap and when America's go down it's about to be the end of the world.
i'd never noticed that footnote, thanks.
who is ABC media? google search says some entity in bulgaria? is just a foreign subsidiary of the ABC network we get on broadcast TV in the USA?
in any case, i think the page views zh gets from me are about to go way down...
The relative outperformance of the US versus all other global markets is appalling really. In the last year, up 18% versus 5% for the rest of the world. Over 5 years the difference is 8% CAGR, a relative doubling in value in nine years. This when the US was the most expensive market at the beginning. Riding the wave of stock buybacks, unending BTFD plunge protection support, and the bullshit social networking bubble 2.0.
Cleanest dirty shirt until the dollar falls apart, at which point it is immediately the dirtiest by far.
When will Russia and/or China finally go to their last resort in response to all the bullying?
"Cleanest dirty shirt until the dollar falls apart, at which point it is immediately the dirtiest by far." -- yes, because the other shirts will be fucking dust. Again, what part of all fiat goes to zero, don't people understand?
yeah I get that - I guess I mean other regions will fare relatively better in the barter economy then. Or at least that the US has by far the most perceived, fictitious wealth to be vaporized relative to the rest of the world.
Perhaps, in my travels other the last 20+ years, I'd say most of Russia and Brazil have had a much larger "barter economy" for quite some time. Only the average sheep in the U.S. is apparently dumb enough to play by the government rules and support the oiligarchy (the same wealthy families...).
ironic isn't it?
Russians know how to survive, and they will...
Goes to zero, but on what timeline? Fiat ain't going away for a VERY long time. The global collusion towards its preservation will prove this time and time again.
Beginning of a hyperinflation in Russia?
America about to enveil a "Deathstar" so all us on Planet Peon can actually see what a trillion dollars looks like?
Long Emperor Palpatine...
Begining? LMFAO!
That's real money phuck face.
"Surely you jester!" doesn't work too well when trillions are involved.
You do not have "trillions".
Stock prices are irrelevant. The return on equities is not irrelevant. Price does not matter until you want to sell. What the news actually says is that the buys of last resort (the banks) are balking on buying Russian equities. It has nothing to do with the free market. The banks are holding Russia hostage. (If Russia attacks, it should be selective against the banks, not countries).
The price of a currency relative to other currencies is only important for foreign trade. The FX price is also set by banks because they are the ones trading currency between themselves. The banks are attacking Russia. It is an aggressive act of war. Russia should probably respond against the banking empire.
None of this matters if Russia is a contained economic system or if Russia has other trading partners who are not trying to economically sabotage them as the US and Europe appear to be trying to do.
So, for the short term, until it decides to nuke the banks (which may be never), Russia just needs to increase the price of gas and oil exports proportionately to the decrease in the value of its currency. DO THE OPPOSITE OF WHAT THEY EXPECT... since by intentionally devaluing the Russian currency Europe expect to get more gas for less. Change the game and make them pay more ... but only to the level that they were paying before.
When banks cheat, they void the contract. Let them sue.
War unlike what most people think, is not aout guns and bullets. War is fought on many battlefields and this is just one of them.
And how, pray tell, is the Uke currency doing?
Looking at Oanda.com/currency/converter, I see it's quite strong... has not lost nearly as much as the Ruble. Must be their dynamic economy and resources that's backing it/them - right?
Save The PetroDollar! Bumper stickers now available. As per the previous article re: Brazil's stock market plunge, one must conclude our American economic hitmen are working overtime. MUST-SAVE-PETRODOLLAR!
hope u all r enjoying yet another rocket shaped reversal in the Fraud Markets commencing with the last hour of trading in London again on no volume...
Hat tip to Kevin Henry...
So on yet another metric Russia is less of a lie than the U.S.
Back in the USSA, you don't know how lucky you are, boy/goy...
Back in the US, back in the US, back in the USSA.
Economist World Debt Comparison World Debt Clock
http://www.economist.com/content/global_debt_clock/
Compare countries.....
But the Pooplava's over at Financial Non-Sense say everything is great, and there are no signs of a top. No bad news allowed over there since the 'change' in format - read: We gotta stop scaring potential suckers away with our persistant Doom & Gloom stories... Shame what happened to that site.
Yeah, weird isn't it? They've become more cheerleaders than even the heads on CNBS.
Putin grow some balls, u have the brains.....dont let the tribe fuck your country over again.
Meanwhile, the 5 Nations surrounding the Caspian Sea (Russia, Armenia, Turkmenistan, Kazakhstan and Iran), are holding meetings on how to control and manage that priceless asset, and crafting a Treaty. See http://rt.com/news/191592-caspian-sea-nations-deal/ for details.
"Each country will keep sovereignty over seawaters stretching for 15 nautical miles... They will also have exclusive fishing rights over 10 more nautical miles... The rest of the inland sea will be developed jointly."
/ Sounds suspiciously like peaceful collaboration between nations with mutual interests. "Anything that appears peaceful must be an anti-NATO, anti-US conspiracy, that must not be allowed to stand!" - Brzezinski & Cheney Thinktank
p.s. Where are the GS reps to create MBS's for them? / sarc
http://youtu.be/_72FZAmmQzY
It's going down... crash upon russkies.
But till them.. let them sing their little song :)
http://youtu.be/bRv9QYwrEfw
GMAFB! Interestingly enough, if you're not easily confused by facts or basic math...
1. The CAD has also fallen 18% against the USD, and I don't hear "The sky is falling" on the MSM. What exactly IS the reason for the astounding weakness in the CAD? It's not as though Canada has: Open Borders, Obamacare, endless MIC spending for endless wars, Debt above the eyeballs, an uneducated public, civil unrest, or lack of industry, tech or resources. So, what gives, Wall St Muthafu...s?
2. The Uke Hryvnia (UAH) has fallen 64% against the USD, and I don't see the MSM waving "The End is Near".
3. The RBL/UAH ratio has gone from 0.25 to 0.35 since the start of the Crisis (from 3.75 UAH = 1 RLB to 2.75 UAH = 1 RBL). The UAH has gained strength? Really? ROTFLMAO. How do YOU spell "FX Manipulation", Einstein?
In the era of the www and hijacked MSM, we've learned to (a) NOT trust the MSM at all, and (b) to get our own info.
Kirk, the video was produced by Ukraine today, a propaganda mouthpiece for the Kiev/CIA government.
Lurching through traffic down 24 West past Orinda towards the Caldecott Tunnel this morning; then to the 580 Split onto the Bay Bridge ... often a brief course of mental horror shoots through me. It is then oh so clear why they are puliing out all stops to save the petrodollar.
As I have said, repeatedly, my best hope is that whatever adult leadership remains in this country is soberly discussing with their peers across the sea a gradual transition. Once the petrodollar fails the entire system fails, in the U.S. Entirely and overnight. As in gas for $6, $8, $10 a gallon and National Guard at the pumps and crates of cheesefood being distributed in the Safeway parking lots to the unprepared.
I would prefer Robber Barons to the monotheists who see the face of their god in a fireball, at this point. Which will it be? We are stepping into a dark age in any event.
Always good to hear :) Crush that piece of shit Putler.
Military budget equal to 1 Nato country, such as the UK. GDP Per capita one of the lowest in the Europe..
Loosen the screws in your skull cap, Frankenstein.
2% settlement in Renembi world trade, Russia far less
http://en.m.wikipedia.org/wiki/Internationalization_of_the_renminbi
USD not going away any time soon.
Instead of working with American oil services companies, now Russia will work with Dubai companies (Halliburton), Swiss companies (Transoceanic), and Norwegian companies (Seadrill). There are plenty of Chinese companies that either have (or bought) all the oil exploration technologies that Russia needs. Unlike American technology and manufacturing knowledge, Russia oil cannot be 'exported' to places with cheaper labor.
russian stocks enter bear market?!? Is that supposed to be funny? Is that Tyler haha? ... "self improvement is masturbation