Although Forbes “ETF Professor” is warning that many emerging exchange traded funds (ETFs) will finish 2011 “in the red,” he likes the looks of certain Russian ETFs in 2012. Observing that if predictions that triple-digit oil prices become the norm are accurate, it will spell good news for these entities, the professor speculates that “all things being equal…RSX [Market Vectors Russia ETF] should rally”[1]. However, the analyst warns that with Vladimir Putin in power, political headwinds could still do the ETF in.
Presently, Eastern European markets are following the downward trend of the eurozone – as are many world markets – but some analysts speculate that the fall of the eurozone might actually lead to revitalization in Eastern Europe and in Russia in particular[2]. These analysts cite a burgeoning Russian cultural revolution and the return of many Russians to their native country as signs that the country and its market could help keep Eastern Europe out of the doldrums, and recommend ETF investing in funds that are weighted with Russian stocks but also carry weight elsewhere in Eastern Europe.
Do you think that Eastern Europe and Russia in particular might actually benefit from the European debt disaster? Are you investing in these funds?
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[1] http://www.forbes.com/sites/benzingainsights/2011/12/13/twelve-for-12-emerging-markets-etfs-to-watch-in-the-new-year/
[2] http://seekingalpha.com/article/309418-the-potential-in-eastern-europe
