Back from an investment-finding trip to Russia, EmergingMoney.com founder Tim Seymour shared a few major themes he found.
1. Look beyond oil.
Seymour said on Monday that Russian oil stocks remained cheap but urged a look at consumer names, especially since inflation, “like in the rest of emerging markets , is potentially at record lows.” He also predicted energy and education will fuel economic growth over the next 20 years.
For now, stocks Seymour liked include Yandex, , Vimpelcom and Mobile TeleSystems, the latter two being among “the biggest names in Eastern Europe cellular, and names that I think trade at a very interesting valuation.”
Mail.ru also benefitted from the Facebook “ halo effect ” because the company owns 2.9 percent of the pre-IPO company.
2. Russians aren’t keen on austerity.
“In Russia, they are looking at Europe and saying, ‘Look, fiscal austerity is actually a bad thing.’ I viewed a panel where actually Vladimir Putin sat with Michael Milken, Paul Krugman , the head of Sberbank, and they had a very intellectual economic discussion,” he said.
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