March 31, 2013
Weekly Market Outlook
By Keith Schneider
While the US stock market finished up the first quarter of 2013 with a nice 10% rise, foreign markets languished. Russia and China were noteworthy underperformers; however the news out of Russia bears keeping an eye on. The onslaught of news appears mainly on page 2 rather than as a headliner. But, it has caught our attention. This sleeping bear is attempting to claw its way out of hibernation and recapture its lost glory. Individually, each news item might not seem all that significant. But collectively, it adds up to a challenge to the West and US.
There are four key developments, one of which includes serious military exercises in the Black Sea by all the departments of the Soviet Military. This has taken NATO by surprise and sends a clear message to the West that Russia is back as a military power. The unexplained death of Russian Tycoon Boris Berezovsky in London last week, who happened to be a bitter foe of Putin, is also noteworthy as is the announcement of a new Platinum cartel lead by Russia and South Africa to control the supply of a strategic metal.
Additionally, the Russian stance on its murderous client state Syria, also is indicative that the new Russia is playing from the same old playbook. Although the Russian stock market is performing poorly, the developments on the world stage indicate a re-emerging Russia and possible mispricing. This week’s video will take a look at the usual fare and take a peek at the Russian ETF as well.
Have a Great Weekend.
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