The Market Vectors Russia ETF (RSX) exchange traded fund (ETF) that launched in April is up 11% since the market low in August. What could account for its rise?
One factor influencing RSX’s performance is the prediction that the country’s GDP could grow 7.5% in 2007, according to Russia’s Finance Minister Alexei Kudrin. He also said he thought capital inflow to Russia would be somewhere between $60 to $70 billion for this year, according to Interfax. Another factor that could help RSX is the International Monetary Fund’s (IMF) overall positive outlook on Russia’s economy. All members agreed that the country has had rapid economic growth; an increase in the volumes of investments, including direct foreign investments; and financial sector strengthening and development, ITAR-TASS reports.
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.