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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (11147)	11/18/2001 6:34:31 AM
From: Moominoid	Respond to of 74559

(b) Abundance of natural resources Interesting that the same week that Business Week went on about what a great place Russia is to invest I get my quarterly newsletter from my mutual fund manager (Colonial First State). They have a big discussion about how they avoided investing in Norilsk Nickel in the "Global Resources Fund" (I have units since 1998). They were taking a geological perspective on it. Had a nice picture of their geologist out there and discussion that the main reserves were exhausting... (f) Immigration Of Chinese? David

To: TobagoJack who wrote (11147)	11/19/2001 5:24:15 PM
From: FR1	Respond to of 74559

how great the Russian economy is? Is it true that the russian tax rate is at a flat 13% this year and will go up to a astounding 34% in the next year? I can't remember the actual numbers but the idea is that they are reasonable now so everyone is willing to pay but they have a real sharp spike in the next year or so. Everybody will be back to reporting zero income. Oil is the primary ingredient in Russia's financial success and todays figures are based on past performance when oil rates were high. Russia recently told the arabs they will not join the oil pumping restrictions. Why? Because for the past few years Russia has been working with big oil firms to increase its output and that policy is now coming on line. Russia is suddenly a major producer of oil equal to most arab states and doesn't want to shut down the system it worked so hard to create. Bottom line is a net loss of money compared year-to-year. There is still a lot of the old Soviet style characteristics going on in the country and you get the feeling they could change direction in a heartbeat. It was really strange watching cable TV last night. All the US channels were reporting on Afghanistan showing joyous crowds in the street. The Russian TV showed none of this. Just a somber picture of a few people walking around and a somber narrative about how dubious any gains were. Most of the other things you mention are true. If they can hold it together and keep on track the future looks bright. Their stock market last year was way up compared to ours but it is super risky business investing in Russia.