Emerging Markets. Brazil, Russia, India, China, South Africa!

Dear Reader,


The major emerging markets as Brazil, Russia, India, China and South Africa are in a bear market.

The trade war the USA is waging with China took its toll on the Chinese stock market and the main gauge for Chinese equities CSI 300 suffered a fall of more than 30%.

The US levied sanctions on Russia and the Russian stock market tanked. What is more, the US is widely expected to levy new sanctions on Russia which will hit banks, financials and even may touch Russian government bonds.

The US is slowly 'dealing', 'handling' its opponents. Will such behaviour fly? Yes, as long as the united states dollar is king, the US will win, even when battling on many fronts.

But the current dip is a buying opportunity for long-term emerging markets investors. Especially Russia looks quite undervalued. When the pending crises connected with US sanctions fades, Russian stocks will look especially cheap. The world will continue to need larger and larger resources of energy to feed its insatiable appetite for economic growth. And Russia with its huge oil and gas reserves, leading position in nuclear energy generation is uniquely position to benefit. The economy of Russia has the potential to  double from the current circa 1.76 trillion USD in the next 5 to 10 years. Due to the huge depreciation of the Russian Ruble, labor in Russia is cheap, the market is relatively large, untapped and the quality of human resources is of a very high level and at the current wages it is a huge bargain to produce, sell and develop in Russia.

India, currently, has evidently no enemies in Washington. India's IT sector is growing exponentially, payments services have huge adoption in India. India's economy is poised to grow faster than even China's economy. So long-term India's equities do look very undervalued. The standard is low,labor is cheap and relatively highly qualified. So the future of India looks bright.

Disaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed in the blogpost and posts on social networks(Twitter, LinkedIn etc.) are the author's and they in no way express the opinion or official position of the company where I am working currently!

Conflicts of interest: I may possess some of the securities,currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Kind regards,

Petar Posledovich