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Can we make money in Russia's stock market?

Posted on 9/1/14 at 7:24 pm
Posted by I Love Bama
Alabama
Member since Nov 2007
37770 posts
Posted on 9/1/14 at 7:24 pm
Their market has been getting hammered ( and rightfully so). But if (when) things cool off over there, the market should come roaring back, right?

Are there any funds I can invest in that can take advantage of this?

Maybe LSURussian can chime in....
Posted by ulsaint
Member since Oct 2007
2460 posts
Posted on 9/1/14 at 8:39 pm to
Several Russian etfs. Take a look at gval. Invests in stocks incountries with lowest cape ratios.
Posted by LSUTOM07
Baton Rouge
Member since Dec 2011
765 posts
Posted on 9/1/14 at 8:41 pm to
I am interested in what the MB has to say about this.

I have been looking to capitalize in Greece. I have been tracking companies over the past year, but I have a very hard time valuating companies that I am not familiar with. National Bank of Greece is one that I believe offers huge upside long term. I just haven't seen any indications of a turnaround just yet.
Posted by Walking the Earth
Member since Feb 2013
17260 posts
Posted on 9/1/14 at 8:56 pm to
In Russia, stock market make money off of you.

No? Hello? Is this thing on?

Posted by LSURussian
Member since Feb 2005
127355 posts
Posted on 9/1/14 at 9:44 pm to
Only invest an amount you can afford to lose. You might make a decent return or you might lose everything.

I've found better ways to lose money....
Posted by Beerinthepocket
Dallas
Member since May 2011
856 posts
Posted on 9/1/14 at 10:11 pm to
quote:

I Love Bama


This sounds like a terrible idea.

1. Their economy is worse than ours.

2. US government sanctions could make your investment worthless.

3. Russian government sanctions could make your investments worthless.

With as close as it's been getting to all out war over there, I bought some relatively cheap SPY puts as insurance on the gains I currently have in my portfolio.
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 9/2/14 at 6:11 am to
quote:

the market should come roaring back, right?


Sort of seems like investing in Cuban and Venezuelan stocks to me. Russia doesn't exactly represent a future of vibrant economic growth.
Posted by LSU0358
Member since Jan 2005
7921 posts
Posted on 9/2/14 at 8:25 am to
It's one of the most volatile markets there is. Also, the exposure to swings in the Ruble adds a second dimension of the trade that we don't see in the US stock market.

This one is a no for me.
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5626 posts
Posted on 9/2/14 at 10:40 am to
Markets come roaring back as long as you have the necessary investor base and financial infrastructure to allow it to roar back. This was the case with Greek equities following their massive sell-off, but the difference is here that Russia is actually cutting ties to western capital and investors.

You can invest in a variety of funds and ETFs to get Russian exposure (whether locally or externally), but retail money will not be the catalyst that causes a rebound in Russian market. Large global asset managers comfortably rolling their holdings in Sberbank, Gazprom, etc. gives the necessary stability for sustained rally to occur. This is what is in jeopardy at the moment if geopolitical tensions continue to rise. Definitely not the time to "buy the dip".
Posted by Ole War Skule
North Shore
Member since Sep 2003
3409 posts
Posted on 9/3/14 at 1:13 pm to
quote:

Are there any funds I can invest in that can take advantage of this?



I'd put my money in the 'I Love Bama' fund that returned 100% this year....
Posted by Monk
Baton Rouge
Member since Aug 2007
3660 posts
Posted on 9/3/14 at 9:55 pm to
Yes, if you short a Russian exchanged-based ETF
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