Hello 2015: Russian equities – time to buy? | beyondbrics:
"Russian asset prices have taken a severe battering this year and are now ranked as among the cheapest in the world. The obvious question many are now asking is, “is this a good time to buy” or “is there more pain to come” which might lead to even lower prices and valuations in 2015?
Apart from the cheap valuations, the reason why investors are asking that question now is because, during Russia’s previous two recent crises, in 1998/’99 and 2008/’09, we had similar situations where the reasons to continue avoiding the country were overwhelming but it was, nevertheless, exactly the right time to buy.
In October 1998 the RTS Index hit a low of 38.5 and then rose to a peak of 2,500 in May 2008. In late January 2009 the Index closed at just under 500 but three months later it reached 1,000. Recently the RTS Index reached 700, at which level it was down 50 per cent since the start of the year while the MSCI Emerging Markets Index was just about flat."
'via Blog this'
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