Russia has provided great opportunities for investment in recent years. However, the country is fraught with problems. Massive corruption, a heavy reliance on energy markets, aggressive and hostile diplomacy and the remnants of the Soviet-style planned economy all combine together to form a risky investment environment. Because of this, I have hefty reservations about investing in the country.
I think Russia needs to be a little less hostile diplomatically, and a little more capital friendly before I'll feel comfortable embracing this BRIC nation. While we've made some great gains in the past, for now we'll avoid Russia -- there are simply better opportunities to be found in other emerging Asian markets that offer a greater risk/reward ratio. However, I will continue to check up on the country and will let you know when the time is right to jump back in.
Not much has changed for the better since I gave my 2009 economic outlook for Russia in January of this year. Though their stock market has had a nice run of it, their economy continues to suffer. In fact, even Russian officials don't expect their economy to fully recovery until perhaps 2012. For now, I expect Russia's recovery to be volatile and more difficult to predict -- so we'll continue to avoid the country and focus on more profitable opportunities elsewhere in Asia. more...
The Global Food ShortageIn the past few months, the price of food has gone through the roof. The cost of milk, eggs, bread, and meat has reached staggering highs. And considering that the strong food demand from China and other emerging countries isn't slowing any time soon, I think that this food crisis will last for a while. Read further to learn about China's impact on global food supplies, as well as other contributing factors to the crisis. more... |
The Impact of Emerging MarketsCrude oil prices are marching higher this week, and I expect prices at the pump to only get worse as we enter the summer months. Many Wall Streeters think that the growth in U.S. oil inventory will alleviate the pricing pressure on oil prices, but they are failing to consider the impact of emerging market demand. Read on to learn about how emerging markets are having a significant impact on higher oil prices. more... |
A Golden StrategyThe recent credit crunch has highlighted one of gold's major draws -- its ability to be a safe haven for cash. Lately, as the market has become increasingly volatile, investors have turned to gold and made it one of the strongest asset classes right now. There are valuable trends developing with gold, as demand for the metal has been the strongest in years, and I think it is a smart place for us to turn for profits. more... |
Market Outlook: 02-27-08Even though the United States has experienced a lot of economic turmoil over the past few months, I believe the economy remains resilient outside of the housing and financial services industries. Recent reports indicate that consumer spending has held up well. According to the economic data, though the spending growth is slowing down, firm employment levels at high-wage jobs are keeping higher-end American consumers active. more... |
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