anvor

Hedge Fund Manager's Notebook: Blood on the Streets - Buy Russia

The thought here is: the current Russian government will slowly try to wrestle the natural resources from the "oligarchs" who, in essence, stole them from the Russian people in the nineties.

It will be a VERY slow process, but you'd never know who among oligarchs will be next. If you invest in Russia, try to invest in services, construction, food, perhaps utilities, etc., the sectors that do not depend on WHO owns the natural resources. Besides, they will be the ones on the upswing more than the commodities, anyway.

The good thing - the government there is stable and VERY popular with the electorate (in part for its attempts to sideline the power of the oligarchs). Condi Rice may say Russian gov-t is not as "democratic" as, say, Georgian (Medvedev/Putin never got less than 65% of the vote, Saakashvili in January - 53%) but a smart investor isn't spooked by China's Communist gov-t, right?