Time to buy shares in Russian companies?

Time to buy shares in Russian companies?

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Attention world-class players focused on U.S. equities , because now very acute question of continuing growth or early corrective movement . Recall that last upward movement of U.S. stock market is considered to be the longest . Many economists believe this situation is quite anomalous , and felt more cautious purchases . Any , even provocative movement may well disrupt the delicate balance and drive the stock market correction – the analysts TeleTrade.

While the situation with the U.S. market is not resolved , you should pay attention to the stock market of Russia. From the beginning, he sank 18 % due to rising tensions between Russia and the West. Ukrainian and Russian invasion crisis could not affect the situation in the stock market . In March, there was an active foreign investors selling shares, bonds of Russian companies , as well as appreciation. In turn , the ruble sank in the same period by 9%. Investors withdrew about 4.5 billion dollars of equity and $ 4 billion of bonds.
To date, the Russian market is the cheapest in the world , but also quite risky .

Some Western experts believe such circumstances opportune moment to buy assets at an attractive price . The Russian economy is greatly weakened amid rising inflation and reducing investment. Active protection from catastrophic fall of the ruble led to the fact that Russia ‘s foreign exchange reserves declined by 16 billion dollars just for two months. And despite the fact that the Central Bank of Russia raised interest rates.

According to analysts TeleTrade, for the appeal of the Russian stock market and big risks lie . Escalation of the conflict would entail tougher sanctions the West, which , of course, will entail a further fall in the market. Say that it is time to “buy Russian ” – is premature. Anyway, return to the previous level will not be decided until the issue of the election in Ukraine.

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