With the Cold War 2 in full swing and with Russian markets and Ruble collapsing, is it time to try and catch a falling knife? Will Russia go from wounded bear to bucking bull
Not so fast. We first looked at the Russian market back in May of this year when it was undergoing a strong bounce from March lows. And after topping out at around $27 the Russian market is now down close to 40%. With that in mind, my view remains the same.
Trying to pick an exact bottom is a fools game. There is very little doubt that the Russian market is selling incredibly cheap. We are talking about below 2009 March bottom for the US market cheap. Yet, it doesn’t mean the RSX cannot go lower. First, we need a technical confirmation that the market has bottomed. As of now, it is nowhere in sight. Not even close. As a result, Russia should remain on your “watch” list until the bottom is set, technical reversal is achieved and a new bull market begins.
Once that happens, the time would be right to load up on some Russian equities at give away prices …… you know Putin will.
