Global Q&A: Don't rush into Russia just yet

Filed under: International markets, Exxon Mobil (XOM), Russia, Chevron Corp (CVX), BP p.l.c. ADS (BP)

I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with John Connor, manager of the Third Millennium Russia Fund, who thinks Russia will come back, but not until confidence is restored in the global markets.

Q. John, besides rapidly falling oil prices, what do you see as the primary factors that caused the more than 72% decline in Russian stocks in 2008?

A. Aside from a general flight to quality from emerging markets into the US dollar, the Russians had a couple of things that made it worse: Putin is tired and cranky and should retire, making mistakes with Mechel Steel (NYSE: MTL), [putting] unfair pressure on BP (NYSE: BP), and of course, his overreaction with Georgia. The Georgians started the conflict and if Russia had any public relations sense, the country would have been out in front, telling its side of the story, including its peacekeeping role since the 1990s. Instead, investors bought Georgia's PR, causing them to dump Russian equities, including great companies like Lukoil (Frankfurt: LUK.F), which is now trading at a little more than three times earnings.

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Global Q&A: Don't rush into Russia just yet originally appeared on BloggingStocks on Wed, 28 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

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