As our own market gets more and more overvalued, one has to search for other alternatives. Emerging markets of Russia and Eastern Europe
offer such an alternative. While Russia's GDP is around $800 bln,
the market cap on the Russian Trading System is $40 bln.
This shows the size of the long-term opportunity - about 20x return
on your money in 10 years. Most Eastern European contries have already seen GDP minimum after the collapse of communism, and are
now growing at stunning rates of 5-6% or more. Russia is reaching
its minimum right now, the GDP was almost flat in 97 (down 50%
from 87), and is expected to grow 2-3% in 98. The risks include
shaky political system, unstable currencies, vague definition of
shareholder's rights, etc. This thread's objective is to discuss the
opportunities in that region of the Globe - both long and short. |
