dtblount

Russia's Too Risky - Barron's

I think we are all forgetting that Russia is an EMERGING MARKET. It is not a developed market and simply cannot be compared to the US or the Eurozone on any real level. Of course there is risk and the threat of geopolitical instability. People don't invest in Russia because of stability and low volatility. They invest because the perceived gains in individual investments are believed to outweigh perceived risks. There are great companies in every country on earth...some are easier to find and invest in than others. Even Zimbabwe has great companies...

In a broad, macro context, I'm extremely bearish on Russia in general...but some individual companies look great to me. However, if commodity prices slow down, I think the Russian economy will see the current problems magnify, as well as the emergence of new issues. I don't think the economy is diversified enough and a lot of new wealth is leveraged on the commodity boom...


Cheers