Author Topic: Why are Russian stocks so cheap?  (Read 66110 times)

Palantir

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Re: Why are Russian stocks so cheap?
« Reply #30 on: March 08, 2014, 11:25:00 AM »
If you're getting dividends you will worry less even if your stock stays cheap.....
My Portfolio: AMZN, PAGP, FSLR, OKE, PYPL, RHT, MSFT


ERICOPOLY

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Re: Why are Russian stocks so cheap?
« Reply #31 on: March 08, 2014, 11:45:39 AM »
If you're getting dividends you will worry less even if your stock stays cheap.....

It distresses me to pay taxes when there is no gain.

plato1976

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Re: Why are Russian stocks so cheap?
« Reply #32 on: March 08, 2014, 12:14:30 PM »
what's the next cheapest country one year ago ?
I think one of those EUR countries that were in trouble ? Spain ?

Those of you thinking about buying Russian ETF, read Ben Inker's (GMO) thoughts on lagged value. Buying countries that were the cheapest one year ago beats buying countries that are the cheapest today. Value+Momentum > Value. See Page 11.

http://www.gmo.com/websitecontent/GMO_QtlyLetter_ALL_4Q2013.pdf

Russia was the cheapest market a year ago too.

Zorrofan

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Re: Why are Russian stocks so cheap?
« Reply #33 on: March 08, 2014, 12:25:43 PM »
Part of it is much of Russia is a kleptocracy led by the government. 

Putin has already threaten to seize "Western" assets if sanctions are imposed.  So on top of everything else you have to add increased political risk......remember the quote about the return OF your money being more important than the return ON your money!

cheers
Zorro

Palantir

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Re: Why are Russian stocks so cheap?
« Reply #34 on: March 08, 2014, 12:32:22 PM »
If you're getting dividends you will worry less even if your stock stays cheap.....

It distresses me to pay taxes when there is no gain.

I have a Roth...although the tax withholding might be a concern.
My Portfolio: AMZN, PAGP, FSLR, OKE, PYPL, RHT, MSFT

augustabound

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Re: Why are Russian stocks so cheap?
« Reply #35 on: March 08, 2014, 12:49:32 PM »
what's the next cheapest country one year ago ?
I think one of those EUR countries that were in trouble ? Spain ?


For year end 2012 I thought the cheapest were Greece and Ireland.
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constructive

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Re: Why are Russian stocks so cheap?
« Reply #36 on: March 08, 2014, 01:11:07 PM »
http://www.businessinsider.com/the-cheapest-stock-markets-in-the-world-2013-3

Russia, Argentina, China and Norway were cheapest on PE, Greece and Ireland cheapest on CAPE.

EliG

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Re: Why are Russian stocks so cheap?
« Reply #37 on: March 08, 2014, 02:09:45 PM »
May 31, 2013


augustabound

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Re: Why are Russian stocks so cheap?
« Reply #38 on: March 08, 2014, 02:26:28 PM »
http://www.businessinsider.com/the-cheapest-stock-markets-in-the-world-2013-3

Russia, Argentina, China and Norway were cheapest on PE, Greece and Ireland cheapest on CAPE.

Yes, I should have added I was using Mebane Faber's CAPE for Greece and Ireland.
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Mephistopheles

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Re: Why are Russian stocks so cheap?
« Reply #39 on: March 08, 2014, 02:36:01 PM »
Just a thought, but for a company like lukoil which has American shareholders but also American operations (and around the globe), wouldn't there be consequences for Putin if he decides to take shareholder money? American authorities could cause problems for their American operations for example. Given that they operate (and have shareholders) all over the world I would think that Putin would think twice before treating them as his piggy bank.