09:20 GMT23 October 2020
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    The illegal sanctions the US imposed on Russia have failed in all aspects. Russia has not caved into international pressure, in fact, it has emerged stronger as a result of the sanctions.

    Economic Development Minister Alexei Ulyukayev
    © Photo : Alexander Astafyev
    Putin has done in roughly six months what the US could not achieve in almost five years in Syria. Russian inflation is down, and Russian stocks are trading at extremely attractive prices. Long-term the future looks rather bright for Russia.

    For a long time, we have been stating that the Sell-off in both the Ruble and the Russian stock market provided the astute investors with a great long-term buying opportunity.

    Well, this chart proves that things are getting better and that the Sanctions that the West imposed on Russia at the behest of the America was a stupid idea, but more importantly, it has made Russia even stronger.

    The chart below is proof of this; inflation is down over 50% year over year. Translation things must be getting better.

     

    Russia Inflation Rate
    © Blogger photo. Tactical Investor
    Russia Inflation Rate

    Game Plan Prudent investors should start looking for gems in the Russian market; one good way to play the Russian bounce would be to open positions in the ETF RSX.

    Top 10 Holdings of RSX

    Top 10 Holdings
    © Blogger photo. Tactical Investor
    Top 10 Holdings

    Game Plan RSX faces resistance in the 16.00-16.50 ranges, so it would make sense to wait for a pullback to the 13.50-14.00 ranges before committing new funds.

    Alternatively, you can look to sell puts at specific target price; if the stock trades below the strike price, the shares will be put to your account.

    Selling puts allows you to place a limit order and get filled at a better price than the limit set because your premium further reduces the cost of opening a position. Another stock you can look at is MBT. This article is provided courtesy of www.tacticalinvestor.com

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    Tags:
    anti-Russian sanctions, stock exchange, United States, Russia
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