If you want to make money investing abroad, I suggest you listen to Chris Mayer.
Chris is the editor of the Capital & Crisis
newsletter. He spends most of his time traveling to developed and
non-developed nations in search of the next big idea. In the last five
years, he's visited over 30 countries.
I caught up with Chris this week on my S&A Investor Radio podcast.
He talked about the huge long-term potential in places like China and
Africa. But one of his suggestions caught me by surprise...
Chris is putting money to work in Russia.
Russia is dirt-cheap. As measured by the RTS Index (a
capitalization-weighted index made up of the highest-capitalized stocks
in Russia), Russian stocks trade at about six times earnings... and pay a
4% yield.
Russian stocks are so cheap because no one wants to invest there...
Russia is known as a tough place to do business. Last year, Russia
ranked 133 out of 176 countries on the Corruption Perceptions Index. And
the National Anti-Corruption Committee estimates that the cost of
bribes and nepotism in Russia totals $300 billion each year.
But Chris sees a huge opportunity to make money... You see, the
last time Russia traded at these valuations was in 2009. And Chris told
his subscribers to buy the Market Vectors Russia Fund (RSX). RSX holds a
basket of Russia's largest companies.
At the time, RSX was trading at $12 a share. In just 24 months, RSX rose to $40. That's a gain of more than 230%.
Today, Chris calls Russia "the world's cheapest emerging market." And he suggests investors put money back to work in RSX.
Chris believes we could see similar gains over the next 24 months
buying RSX right here. More important, with the index trading at just
six times earnings, the downside risk is limited.
He has one of the best track records for investing abroad. And the
last time he recommended investing in Russia, his subscribers saw huge
gains.
I suggest following his advice this time around. At current valuations, Russian stocks look like a steal.
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