This year is being very difficult for the equity markets. But if there is an international place that can be profitable, it is that of Russia. Not surprisingly, it is showing one of the higher hikes in the first quarter of this year. In contrast to the more conventional stock markets that are depreciating in this period. Even so, betting on Slavic equities is a decision that involves great risk due to the special characteristics of this stock index.
The Russian stock market has been one of the emerging markets that has depreciated the most since 2012 and at any moment they can change this trend. Counting on a upside potential higher than other stock indices. To the extent that it may be the right time to take positions in this financial asset. Although low monetary amounts not excessively powerful. As a precautionary measure to protect your interests as a small and medium investor.
On the other hand, you can invest your savings in the Russian stock exchange through different investment strategies. From going directly to their financial markets or hiring Investment funds that are based on this very special equity index. In any case, you will have no other solution than to be very attentive to their behavior in the financial markets. In order to avoid some other unwanted situation.
Russia: a rising emerging
In the investment sector there are always business opportunities and this year one of them may be this equity market. But you should know how this special and attractive financial market works. Well, it is a square in which the values of the energy sector predominate. Where oil companies have a very important specific weight. Certainly more than in other exchanges in the world. Where one of the most relevant is Gazprom, and that it can be an authentic purchase option from now on.
In any case, it is a sector that has one of the most powerful offers in the world. With all kinds of business lines so that you can diversify your investments from now on. With the advantage that you can take advantage of the oil rebound, where it has exceeded the important barrier of 65 dollars a barrel in the main financial markets. Well, it is precisely the Slavic market that can best capture the evolution of this important financial asset. To the point that you can make profitable savings much more effectively than before.
Clear rise in oil
Such is the importance of this stock market bet that if you want to collect the increases in the crude oil price One of the most interesting options you have is that of this bag in the eastern part of the old continent. Because there is a lot of money that you can earn from now on if you define yourself by this innovative operation in the financial markets. Precisely because of its clear link with the oil sector that is developing a bull rally which will be very effective in opening positions from these newer positions than ever.
On the other hand, it also has one more than remarkable of the gas companies. In this sense, you cannot forget that Russia is one of the great powers in this energy sector. And as a consequence, it offers all kinds of companies with these characteristics. Where you can take positions to benefit from these synergies of the financial markets. Whatever strategy you are going to use from this current year. But knowing at all times the risk you take in this kind of operations on the stock market.
With more expansive commissions
In any case, the main drawback of going to the Russian Stock Exchange is that you will have higher expenses in management of operations. Almost double that of national equity markets. On the other hand, not with all financial intermediaries you can operate with this very special exchange. You will have no other solution than to contact a bank that operates with this part of the European geography. That is, you will have more expenses than if you operated with the selective index of Spanish equities, the Ibex 35. It is something you should have from the beginning.
Another aspect that you should assess is that the monitoring of the values will be much more complicated than until now. Not surprisingly, it is not surprising that many of the companies in this stock index are not known to many small and medium investors. It is another of the added risks that you have to face if you want to invest in one of the most original equity markets out there at the moment. In addition, it is characterized by be very volatile and this is what makes it very interesting to the most speculative investors in the sector.
Through investment funds
Another strategy that you have before you is to invest in the Russian stock market is through this financial product. It will help you diversify savings, but with less risk than buying and selling shares on the stock market. Partly because these funds are combined with financial assets from fixed income. So that in this way, you are protected against the most unfavorable scenarios for the equity markets. With a wide range of investment funds that can help you in making decisions.
Of course, through this financial product you will have many more opportunities to invest in these financial markets. From different Managers who have decided to market this very special investment model. In this sense, these funds can be mixed with other more conventional stock indices. As a strategy to reduce any kind of risk in operations. And with commissions that are much more competitive with respect to opening positions from the Russian equity market. In what is conformed as one of the most useful alternatives that you have at the moment to satisfy this particular demand.
One of the most profitable emerging
Russian equities are one of the best performing equities this year. To the point of being one of the most profitable, at least until now of the year, that is, during the first quarter. In this way, it is formed as one of the options that can be more beneficial to obtain large capital gains over the next few months within the so-called emerging markets. Where one of the most relevant squares is without a doubt that of this great Slavic nation.
In this regard, emerging equity markets were a good option in 2017. Not surprisingly, the index MSCI Emerging Market was one of the most profitable when revalue almost 20%. Above the results generated by the main sector indices of Western countries. Although in this period, it cannot be forgotten that Russian equities have not done very well with respect to their profitability. Because indeed, MSCI Russia recorded a drop of around 8%. Although its main common denominator is these months, it has been its strong volatility and that has led its values to take a very erratic course.
Very complex market to operate
Not surprisingly, we are talking about a very difficult market to operate, where the fact that you can develop high profits if you enter at the appropriate time stands out. Because if not, you may find yourself with more than one negative surprise that can seriously damage your savings account balance. This is one of the reasons why caution It should be the channel in which your investments are developed from now on. Not surprisingly, it is a certainly complex stock market that you must know with some intensity. At least if you want to protect your positions on the stock market.
On the other hand, you should not neglect the most relevant data of its economy. Because they can give you the odd clue about where their financial markets can go. Well, a warning can be given by the fact that the Russian economy has emerged from an intense and serious recession, to the point that it is expected to have a positive growth of 1,9%, according to data provided by the OECD. Although, of course, below those experienced by emerging countries, which will be above 4% levels.
To take advantage of this good scenario in this part of the old continent, investment funds and ETFs focused on this market are the best instruments to do so. Investors entering now could benefit from the acceleration in growth that is taking place in the Russian economy. While on the other hand, the profitability of the ruble is also an element that plays in favor of the profitability of investments. In a market with a great future for this period.