The Best Performing Stock Market Year to Date is … RUSSIA!

You might find this a surprise considering the economic crisis the country went through, the challenging oil market on which the country is very dependent, the tough trade sanctions western countries lead by USA drop on Russia, as a result of Russian policy on Ukraine, etc…   Nevertheless, Russia is the best performing market this year and is leading by a very wide range over other markets. Year to date Russia is up 46.30 %!!! This is huge considering the world is amazed by the US market performance this year which is up about 11.0%. This is spectacular performance considering the circumstances and especially when comparing with European countries which are flat to down year to date.

Since Russia has been an unpopular market to invest in, especially for the US and European nations, Russian equities remain relatively cheap in comparison to western countries equities. However, it seems that world markets are starting to pay attention especially after the election of Donald Trump for US presidency. Trump has been openly expressing his opinions on US / Russia relations and now world markets expect ties to grow closer. 

Another new benefit to Russian market is the recovery of the oil market; now with prices back above the $50 mark with the help of Russia diplomacy bringing together Saudi Arabia and Iran to agree on supply agreement, Russian economy stand to benefit as large part of their economy depends on crude oil.

Furthermore, Russia may have another new catalyst propelling their market higher. The Russian economy has been strongly damaged by the economical sanctions following their actions in Ukraine. Now, the new US president, Donald Trump, may help remove some of those sanctions as he tries to warm up relationships with Russia president, Vladimir Putin. 

Obviously, the performance of Russia's stock market this year shows already that investors are also getting warmed up to the idea of investing in Russia. However, the sanctions that are still in play, makes it harder for investment firms to invest directly in Russia and it is easier to participate in an investment which tracks the Russian stock market.

One way traders can profit from trading the Russian market is using the Market Vectors Russia ETF (ticker symbol: RSX). The Market Vectors Russia ETF is an exchange-traded fund incorporated in the USA. The Fund seeks investment results that correspond to the price and yield of the Market Vectors Russia TR Index, which tracks publicly traded companies that are domiciled in Russia.

RSX, monthly chart



RSX, daily chart