Reply With QuoteBeware of *convenient* speculation.
Russia is ridiculously cheap
Emerging markets managers say Russian shares have potential for investors, but they are not for the faint hearted.
Russian shares have had a turbulent 12 months but this has not stopped one of Britain's major fund managers from taking a bumper bet on the country's recovery.
HSBC has put its – or rather its investors' – money where its mouth is and has a healthy third of its Bric fund in Russia.
This equates to nearly £300m in a region whose stock market has lost 19pc in the past 12 months.
So why the conviction?
Nick Timberlake, the bank's Bric (Brazil, Russia, India and China) manager, said he had never seen Russian equities so cheap – without an accompanying disaster.
http://www.telegraph.co.uk/finance/p...sly-cheap.html
Beware of *convenient* speculation.
It must be really nice to rake in the big bucks by making bets with other peoples money. Heads you win, tails they lose.
That's how it works in the US. Bet on the 100-to-1 odds and win, take home a fat bonus. Lose? Govenment bails you out with tax dollars and tells you, "better luck next time". Meanwhile the golden goose gets fvcked twice. First at tax time and secondly when their 401ks drop into the $hitter.Originally Posted by Mu-Meson
Well as you know, fiduciary elements and fiscal quirks fund real growth as opposed to a real, solid economy
One problem companies have in Russia is the bureaucracy. The international "Ease of Doing Business" research places Russia 160 out of 183 economies on "Trading acorss borders".
Importing a standart container costs 1'800 USD takes 36 days and 10 documents are needed.
Singapore numbers are: 439 USD, 4 days, 4 documents
USA: 1'315 USD, 5 days, 5 documents
Switzerland: 1'540 USD, 9 days, 5 documents
http://www.doingbusiness.org/rankings
Hight custom duties and corruption are further reasons.
Russia ranks last in "Getting electricity". According the the report, it takes 281 days, 10 procedures and 1'852.4 % of income per capita compared with
36 days, 4 procedures and 31.1 % in Singapore,
68 days, 4 procedures and 16.8 % in USA and
39 days, 3 procedures and 62.7 % in Switzerland.
Only in the topic "Enforcing contracts" Russia is comparable to the other three nations mentioned.
Posting Permissions
