Chart of the week: Russia will get back on course
Russian stocks have slid recently, but the outlook remains favourable. The economy has stabilised and is slowly emerging from recession; there is ample scope for the central bank to stimulate the economy; and the market is still cheap.
Russian stocks have slid recently, but the outlook remains favourable. The economy has stabilised and is slowly emerging from recession, helped by the gradual rebound in the price of oil, Russia's key export.
The market is also still cheap on a cyclically adjusted price-earnings ratio of six.
Article continues belowTry 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Viewpoint
"Sentiment remains frothy The [latest US] Investors Intelligence poll of advisers found 61.2% bullish, a shade lower than the 62.7% reading a couple of weeks earlier, which was the highest since December 2004 [Yet] amid the equity market's seeming complacency, the action in global bond markets suggests something else. The ten-year US Treasury yield ended [last] week at 2.317%, the lowest since late November, despite the reflation trade in stocks Even more startling was the slide in the German two-year yield, to minus 0.95%... amid growing concern about France's coming presidential election. While stock investors are smiling at daily Dow records, the bond crowd seems to be hunkering down.
Randall W. Forsyth, Barron's
