Russian leaders talked up their country at a recent business forum, promising an open investment climate and ambitious economic projections. Could this help push the Russian exchange traded fund (ETF), Market Vectors Russia (RSX), upwards? A top official who is expected to succeed Vladimir Putin, promised a transformation of a high-technology powerhouse wanting to enter the list of top 5 world economies by 2020, reports Alex Nicholson for AP. Russia believes foreign companies who participated in the forum, such as Motorola, ConocoPhilips and PepsiCo, are supportive of Russia’s development and will help them move forward. By strengthening business ties, Russia can gradually integrate into the world economy.
Last year, Russia’s market rose 70%, based on an oil-driven economy. This year, there is growing politcal tension with Europe and the U.S., making Russia the worst performer this year among emerging markets.
The recently launched Russian ETF has suffered from the widening rift between Russia and the West. But there was a rise in anticipation of the G-8 meeting in Germany, reports Joanne Von Alroth with Investor’s Business Daily. Investing in RSX may take patience, but it is important with such an investment to set stop losses and be prepared to get out when you hit your pre-set exit point.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.