Let the Uninformed Flee

Over the past week as oil prices have slid, several Russian companies have lost a some of their value in terms of equity and their bonds have gotten hit as well. If this should happen a little more we would be thrilled as we view this as a rare buying opportunity to selectively purchase quality issues at relatively cheap prices. Unless you believe China and India will disappear in the next few weeks, or clean hydrogen will no longer be just a pipe dream, let’s throw world peace in there as well, then you must believe the world will keep using more energy and this is just a short term price correction. Politically, the situation is as stable as it ever has been with the current government being immensely popular. What many foreign observers don’t get is that even if elections were held under foreign rules, Putin’s candidate would still win. Fundamentally and internally the situation is fine in Russia, we’re just seeing a momentary external variable that can be played for a profit with the proper selections.