Russia looks cheap,” notes our value investor, Chris Mayer. “The Russian stock market now trades for about eight times 2009 earnings. Russia is the cheapest of the big emerging markets -- cheaper than China, Brazil and India -- although all of these markets are down quite a bit, as I've shown above.
“Eric Kraus, who runs Russia's Nikitsky Fund and has been long ensconced in Russian markets, runs off the usual roll call of worries about investing in Russia: ‘Some mixture of “threats to property rights,” geopolitical pressure, the decline in commodity prices, political worries, etc.’ But he also points out that ‘Russian performance has been in line with the BRICs [Brazil, Russia, India and China]. It has done slightly less well than Brazil, ex aequo with India and far better than China.’
“He believes the ‘Russian equity market is now massively oversold and unarguably a buying opportunity in the long run.’”
Regards,
frenchee
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