The Contrarian Investor: Beware the Russian bear

CONTRARIAN INVESTOR

Just when you thought Russian shares could not get any cheaper.....Russia invades Ukraine.

Whatever hint of credibility Russophile investors may once have possessed has now been thoroughly shredded. Russia may have heaps of energy reserves, a decent balance sheet and tens of millions of anxious consumers, yet it is also clear The Boss, AKA Vladimir Putin, really only cares about geopolitics.  The last time I looked, the local RTS equity exchange was down 17% over the past 12 months, and I can only see those losses increasing by the day. With Russian shares trading at an average of 4.6x earnings, on a yield of about 5.1% pa, one can only wonder just how low local shares could g...