The Best Performing Market This Year Is….
Back in September, Bill laid out the case for “ultra cheap” Russia.
And at the end of last year, I wrote that 2015 could be a “banner year” for Russian stocks, if the hemorrhaging in the Russian ruble could be stemmed.
Many Diary readers must have nearly spat out their morning coffee.
At the time, Russia was in full-blown panic mode. And many smart analysts were claiming that a rerun of the 1998 ruble crisis was imminent.
But instead of Armageddon, the exchange value of the ruble stabilized.
And today, Russia is the best performing country stock market so far in 2015.
As of yesterday’s close, the MSCI Russia Index – which tracks a basket of the largest and most commonly traded Russian stocks in US dollar terms – is up 21% year to date.
That’s more than double the gains of the next best performer, India. And it trounces the 1.4% year-to-date gains for the S&P 500.
Crude oil – Russia’s biggest export – is rallying too.
Brent crude oil rose 18% last month – the biggest monthly gain for the international benchmark for oil prices since May 2009.
Brent crude is still down about 50% from the peak in the oil market last summer. But it’s up nearly 18% from its 52-week low set in January.
And the newswires report that both sides in the conflict in Ukraine have withdrawn their heavy weapons from the front line, bolstering the month-old truce brokered by France and Germany.
I’m sticking with my call: This will be a great year for beaten-down Russian stocks.
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