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Strategies & Market Trends : Investment in Russia and Eastern Europe

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To: Real Man who wrote (1032)5/23/1999 1:56:00 PM
From: Rob Shilling  Read Replies (2) of 1301
 
Vi, I guess I don't believe what is bad for the U.S. is bad for Russia. In fact Russia and the U.S. have very little trade between them besides maybe oil. Interest rates going up in the U.S. because the U.S. economy is overheating means that demand for oil is strong. Of course the U.S. stock market will probably go down significantly on higher interest rates, and indeed Russia may go down with any one day crash in the U.S. stocks market. But, one has to have perspective. If the Dow dropped 5% (500 points), everybody in the U.S. would be talking about it, but if the Russian market was down 5% on that day with the U.S. it would almost be a non-event considering the recent volatility in the RTS. The way I look at it, the U.S. cannot have it both ways. The U.S. stock market recovered after the asian contagion failed to hurt the U.S. If the U.S. starts having problems, asia and Russia don't necessarily have to suffer too IMHO.
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