Not to mention that even with the recent rally, Russian stocks are still deeply discounted relative to their developing world peers.
“Russia stands out, both for its low single-digit number and because it is selling at nearly a 50% discount to its historical median level. Of course, earnings may fall in the next year, given the collapse in oil prices, but even a 50% fall in earnings would leave Russia selling at a large discount to the rest of the emerging market,” added Schwartz.
At the end of January, the trailing P/E ratio on the MSCI Russia Index was 3.4, barely more than half the 20-year median of 6.6, according to WisdomTree data.
WisdomTree Emerging Markets Equity Income Fund
Tom Lydon’s clients and Todd Shriber own shares of DEM.