Russia-Ukraine Tensions Offer Unique Buying Opportunity For Investors

Will he, or won’t he? That’s the question many people have been asking of Russian president Vladimir Putin with regard to a possible invasion of Ukraine.

For what it’s worth, I believe such a move is unlikely, seeing as Russia stands to lose a lot even if it were to stage a “successful” invasion and somehow annex all or part of its neighbor. I’ll elaborate further, but for now I’ll say that the financial sanctions alone would be crippling.

What I do know is that tensions have created what I believe is an attractive entry point for Russian stocks, which were gaining nicely before Russian troops were positioned on the Ukrainian border in late October 2021. The dollar-denominated RTS Index, which tracks 50 of the most liquid Russian large-caps, lost approximately a third of its value before recovering somewhat on higher energy prices.Russia-Ukraine-Tension-has-created-an-attractive-buying-opportunity

The Case For Russia: Attractive Valuations And Dividends

We like Eastern European equities, and Russian in particular, for a number of reasons. Two big ones immediately come to mind, though: 1) They’re incredibly cheap relative to other markets, and 2) They offer some of the highest dividend yields to be found today.