Russia receives top marks in emerging markets survey
Good news: Next time you are having dinner with your brain-dead relatives, and your aunt-twice-removed (or whatever) says that she read a very interesting Huffington Post blog about how Russia is doomed and her people eat tree bark as a Vitamin C supplement, you can hit her with this:
"Yeah, actually, Bloomberg just released a survey that shows that western investors think Russia is one of the most promising emerging markets."
Combine the prospects for interest-rate cuts with their higher carry-trade returns and two countries stand out as the best bets this year in emerging markets: Brazil and Russia.
In a survey of 16 investors and analysts conducted Jan. 23 to Feb. 1, the nations’ bonds and currencies got the strongest backing among 10 developing economies. China was the least favored.
It's worth going over the specifics, but for us, the highlights from this survey are:
1. Investors don't buy the propaganda that Russia is money pit of economic despair.
2. Investors view the Russian Central Bank as non-intrusive.
3. Russia is seen as having extremely low "political risks".
And just to be clear: This survey is just one example of how the west has misrepresented Russia's economic outlook.
For a more comprehensive review of where Russia stands today (growth), as opposed to where it was "supposed to be" in 2017 (crushed by low oil prices and sanctions), read this.
We're amazed that Edward Lucas and his ilk still have jobs. (Not really.)
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