Email of the day
Comment of the Day

January 26 2011

Commentary by David Fuller

Email of the day

On Russia:
"I still wonder why you practically never comment on Russia or the CIS more generally, despite your outlook for oil, minerals and emerging consumers. It struck me today listening to your audio that Russia (in which I admit I am quite substantially invested) never features in your overview of European bourses although the RTS main index has been one of Europe's top performers on a one year and two year view. I wonder if Pepsico and BP may have seen something (or been told something) which the herd may have overlooked?

"I am truly grateful for your comments on many other themes and geographies."

David Fuller's view Thank you and not least for a question likely to be of interest to many other subscribers.

I admire Russia and Russians for their rich cultural history and traditions which continue today. Russia is also a vast country blessed with abundant natural resources. Fullermoney's investment reservations are due primarily to concerns over governance and the rights of minority shareholders.

Governance is everything, as we often say at Fullermoney. For this reason I prefer to invest in the resources companies of other countries. However, Russia has had a very credible stock market performance over the last two years, as you point out. Consequently we should comment on it more frequently and my only technical concern is that it is becoming temporarily overextended relative to its medium-term trend mean represented by the 200-day moving average.

Your question regarding what Pepsico or BP might have seen or heard is worthy of consideration, and I thank you for this insight

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