Wednesday, October 19, 2016
Great article on cheap Russia stocks
Sovereign Investor Daily:
I really agree with the above statement and it represents my whole investment thesis. That being identifying undervalued and mispriced securities and then buying them and waiting for the market to realize the undervaluation and correct the mispricing. I like the Russia ETF (RSX).
Russia represents an opportunity because the value of Russian assets — particularly stocks and the local dinero — are mispriced. Sure, reasons exist for a certain amount of weakness in both Russian stocks and the ruble. The economy thrives on oil, and low oil prices have taken their toll to a degree. But much of the asset-price destruction Russia has experienced in the last year or so is tied to a narrative that is dead wrong — the U.S.-fueled theme that Putin wants to rebuild the Soviet Union, that the Crimea annexation was proof of that and that he now has designs on tiny Baltic states or Poland.