RSX is currently trading at an 80% discount to NAV. WSJ reports that Gazprom is trading in OTC markets at .51x earnings and will be just fine in the end.

rsx1.png

I last invested in RSX in 2008, purchasing in the single digits and holding on to sell with LT cap gains. It wasn't an easy ride though. The lows bounced and broke at the retest in early 2009, then it was off to the races - along with everything else. At the time, it was a play on natural resources/commodities after the unprecedented government intervention after the housing bust.

The problem with this time is what happens to the Russian stock market. Any close would cause investors (speculators) to have to write off all their principal. After WWI, Russian markets closed down for almost 75 years. I don't plan on taking that kind of risk today.