SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Investment in Russia and Eastern Europe
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Berliner who wrote (785)11/3/1998 8:31:00 PM
From: Rob Shilling  Read Replies (1) of 1301
 
Paul, it is all determined by whether it is priced in or not.
Now that Russia is worth less than one rather small stock in the U.S. (Yahoo), one might think Russia is undervalued (can you say buy low). A bear market rally ??? maybe, but as you point out the RTS index is still down 80% for the year.
As far as the ruble rate goes, if you take the ruble money supply and divide it by the central bank reserves (which are increasing) you get around 13:1 for the ruble rate. So printing of rubles in a limited way would not do much to the current ruble rate which has already STRENGTHENED from 18 to 15.5.
As November 17 nears and the the debt moratorium is lifted, the probability of a monster rally in Russian stocks is possible. Why ?? because Russia will be like a company emerging from Bankruptcy. Its debt will be restructured and its problems somewhat addressed and many people will look at it as time to buy Russia.
Also note there are two new Russian mutual funds. One is for Russians to invest in with a very small initial investment (something like $18). This fund has high demand from what is reported. Considering the RTS index can go up fast on very small volume, and real buying of Russian stocks could put it in orbit.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News