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Strategies & Market Trends : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?

To: Rob Shilling who wrote (694)	9/19/1998 4:30:00 PM
From: Real Man	Read Replies (1) \| Respond to of 1301

I think you are way too optimistic about tax revenues. They aren't getting much, and they are printing roubles. There is no Tax payment culture in Russia, I think a long time will pass until there will be. Meanwhile, the government will have to rely on the oil sector. Also, PTB is right about stealing - that was the way of life in old communist Russia, and quite hard to get rid of now. I don't see signs of economic stabilization yet, quite the opposite. As for "revenge" of the emerging markets, so far, the money flows back in the US treasuries, a fact which could even lift overvalued US stocks. People hold on to "quality" companies at 100 p/e, as if they are recession-proof. We'll see what happens, but so far it does not look like overheating, rather deflation. In other words, right now there is world-wide turmoil, which will likely continue in the nearest future. Russian stocks are unlikely to rise in this atmosphere.