Investing in Russia
Jan. 24th, 2018 05:56 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
timeletsLast year, emerging markets returns were in the range of 30+%, with Russia being the biggest laggard growing just in single digits. Yesterday, I also read a report that Russian market had the lowest PE ratio among the entire group, at about 5. For the sake of comparison, S&P 500 PE ratio is frothy 26.51.
If the sanctions were lifted in the beginning of 2017, as was expected by most analysts at the time, it would make many people exceedingly rich, both in Russia and the US. That didn't happen because the Congress stepped in. Overall, the war with Ukraine and interference with US elections turned out to be a really bad idea, both financially and economically. I wonder, what would it take for the Russian market to catch up. Maybe it makes sense to place a long-term bet on, e.g. Putin's departure. Hard to guess.
If the sanctions were lifted in the beginning of 2017, as was expected by most analysts at the time, it would make many people exceedingly rich, both in Russia and the US. That didn't happen because the Congress stepped in. Overall, the war with Ukraine and interference with US elections turned out to be a really bad idea, both financially and economically. I wonder, what would it take for the Russian market to catch up. Maybe it makes sense to place a long-term bet on, e.g. Putin's departure. Hard to guess.
