The long-term investment opportunities that are offered from Russia’s growing economy is enough for investors to stay the course and keep their assets in the focused exchange traded fund (ETF).
Russia said this morning that they would end the conflict, but stopped short of saying they would withdraw, report Jeanne Whalen, Marc Champion, Andrew Osborn and Alessandra Galloni for the Wall Street Journal.
Things have appeared shaky for Market Vectors Russia (RSX) over the last few days. The clash over Russia and Georgia pertaining to the separatist province of South Ossetia sent the Russian RTS stock index down 6.5% to a two-year low on Friday, but by the market’s close on Monday, the index had already gained back 1.2%, report Emily Flynn Vencat and Natalia Vasilyeva for the Associated Press.
On this morning’s more hopeful news, it’s up nearly 4% in midday trading, but is down by 20.4% year-to-date.
The drop on Friday was dubbed an “emotional” response. Georgia says bombing is still continuing in two villages, and Russia reserved the right to resume attacks if it encounters fighting or resistance.
If the fight does pick up again, analysts say that it should have a “negligible” effect on the economy. Monday’s recovery was seen as a token of willingness on the part of investors to accept risk and volatility in return for a piece of Russia’s mineral, oil and gas wealth.
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.