Top Emerging Markets Archive - Russia

A significant conflict broke out between Russian and Georgia in the past few weeks, and problems there are still lingering. This is an important event, and I think it is vital that global investors understand what is happening there and the implications of the events. So read on for my analysis of the situation, what it means to us as international investors, and my current recommendation on where to focus our investments.

We've experienced some rough times in the market lately, as economic problems are weighing heavily on domestic and global markets. However, while the rest of the world is struggling to keep their heads above water, Russia is enjoying impressive economic growth. I think this is a great place to focus our money, so read on to learn more about why Russia is ripe for investment now.

In 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.

Crude 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.

The 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.

Even 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.

The ongoing financial crisis in the U.S. has had a direct impact on the global gold market. According to the most recent data from the World Gold Council, international gold demand surged 30% to a record $20.7 billion in the third quarter of 2007 from the same period one year ago. Bullion's safe-haven and hedging characteristics are especially attractive to investors during the current period of instability, greater inflationary fears and a declining U.S. dollar.

We haven't talked much about the Russian economy. So today I want to take a look at Russia and what I'm expecting for the country this year. I'm bullish on Russia, and I believe the Asian powerhouse will have an excellent 2008 as a robust economy, strong consumer demand and an increasingly clear political landscape will drive Russian stocks higher in the coming months. I want to add a Russian company to our buy list.

It seems that Russia's popular President Vladimir Putin has no intention of stepping down from power when his term expires in 2008. Although Putin formally endorsed First Deputy Prime Minister Dmitry Medvedev to become the next president, early this week, Putin said he agreed to become Russia's prime minister if Medvedev is elected president in March.

There has been no holiday cheer on Wall Street this week -- U.S. stocks experienced the steepest weekly drop in a month. Some of the losses may have been due to the recent CPI announcement. The consumer price index jumped 0.8% in November, the most since September 2005.