As I’m writing this, the Russian ETF (ERUS) has lost 12% in one day. As many value investors know, you need to buy stocks when there is blood in the streets so I’ve had many questions about whether this is an opportunity or a trap.
Let’s take a look at what’s going on, look at the fundamental perspective, and the stock market perspective on investing in Russia.
Introduction
I mentioned in a recent article about international diversification that Russia is one of the cheapest markets out there when looking at fundamentals.
In today’s article, I want to analyze the Russian market a bit more in depth to distinguish between oil and gas related cheapness and other sectors. I’ll analyze the risks and potential rewards and then conclude with what might be the best way to get exposure to such a market. More →
Introduction
At the end of 2016, I wrote about how it was best to avoid Russia due to its dependency on oil, slow development and progress even if it was and still is the cheapest stock market in the world. Since then, the Russian ETF has dropped almost 20% but has currently recovered to the December 2016 level. More →
Introduction
I recently wrote an article on oil where I discussed the implications of and best timing to invest in oil. A commodity that is closely related to oil is natural gas. However, the long-term supply and demand trends are a bit different than those for oil which make natural gas an interesting long-term investment opportunity. More →
Introduction
As you probably know, the S&P 500 and many other indexes are extremely expensive. The cyclically adjusted price earnings (CAPE) ratio for the S&P 500 is 29.87, which is just about to pass the 1929 peak CAPE ratio. However, the situation isn’t much better around the world. The German stock index has a CAPE ratio of 19.6, the Dutch index 21.6, Australia 17.5, India 20.3, and Japan 24.9. These CAPE ratios of around 20 mean that you can expect investment returns of around 5% or lower in the long term.
I find any kind of stock market return below 10% a crazy investment because the risk of owning stocks is simply too high for anything less than 10%. You might wonder where you can find double digit investment returns. Well, this is what I’m going to share in this article. More →
Russia As An Investment Opportunity
Russia has been the best performing market year-to-date and is up 50%. However, it’s still considered by many in the financial environment as one of the cheapest global markets as it’s still far from the pre-sanction and higher oil prices levels of a few years ago. More →
Introduction
In May we discussed how emerging markets have been rediscovered but are still undervalued. Since then, the emerging markets ETF is up 10%. More →