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.
There is ample scope for the central bank to stimulate the economy. Inflation is under control it has fallen below 6% but interest rates are still at 10%. The political backdrop is stable, albeit authoritarian, and America's President Trump could loosen sanctions against Moscow.
The market is also still cheap on a cyclically adjusted price-earnings ratio of six.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
-
Hargreaves Lansdown bumps up cash ISA with £25 cashback - does it beat the wider ISA market?
Just days before the end of the tax year, Hargreaves Lansdown has launched a £25 bonus for those who open a cash ISA on its savings platform. Does the bonus make it a competitive rate, and are you eligible for the cashback?
By Vaishali Varu Published
-
FCA targets finfluencers with new social media guidance
So-called finfluencers have been warned by the UK financial watchdog that they could face prosecution if they fail to follow new rules.
By Henry Sandercock Published