Jim Rogers Is Buying Russia
Jim Rogers is buying Russian stocks.
The famed investor, and cofounder with George Soros of the Quantum Fund, says that the low prices on offer there make the Russian stock market more attractive right now than the U.S.
I see Japan still down 50% from its highs, China down 30%, and Russia the most hated market in the world, so I have bought all three in recent years and weeks.
Why should I buy the U.S., which is wildly popular and expensive, when I can buy Russia, which is hated and cheap? There is nothing wrong with buying U.S. stocks if you know what you are doing. For me, it’s easier to buy stocks cheap.
Last December, in the middle of the ruble crisis… and with the Russian stock market in free fall… I said that 2015 would be a “banner year” for beaten down Russian stocks.
As you can see from the chart above, so far in 2015, the big Russian stock market ETF, the Market Vectors Russia Trust (NYSE:RSX), is up 24% in dollar terms versus a 2% gain for the S&P 500.
Much of the attention has been focused on the big rally in Chinese stocks this year. But of all the major country stock market ETFs, RSX is the best performer.
As Bill likes to say, “The world turns. Cheap markets tend to become more expensive. Expensive markets tend to become cheap.”