Blood in the Streets

Warren Buffet is famous for suggesting you buy when others are running for the exits in fear.  The Rothchilds and Rockefellars suggested you buy when there is blood in the streets.  Famous investors all say buy when prices are low and value high.  Yes it is much easier to say you will do the buying than actually DO the buying when there is fear and worry all around.   People being who they are when buying stocks always allow emotion to guide their purchases and not their thinking. So it is almost a surety that most people buy when the market is high and sell when it is low. 

However if you can consider value and willing to deal with uncertainty there are high value securities with lots of blood dripping out there to buy.  The stocks I am referring to here are...wait for it...Russian stocks.  Yep that country that is quickly becoming the pariah of the world.  That country getting hit almost daily with bans and imports and sanctioned by almost everyone.  Their stocks are taking hit after hit and many of the good ones are trading at PE's of 3 or 4, which is lower than low.   Many of the oil stocks are still paying out dividends with high yields and they are frankly the cream of the crop.  Seriously oil in the ground is going nowhere and is high in demand. 

Russia is a country that is really nothing more than a gas station parading around as a country.  Gasprom and Lukoil are huge producers or energy and pay out dividends. But past those two there are other companies getting the same low PE treatment. Even the cell phone operator in Russia is trading at years low prices.  So how does one take advantage of this low PE environment and get to make some money when Russia rebounds?  

First off let's be honest no one knows when or if Russia will rebound since Putin is in charge and will remain in charge for some years.  But if time goes on as it normally does sooner rather than later events will normalize and Russian stock prices will recover.  Your best bet in our opinion is to buy the ETF symbol RSX which is trading at almost a 50% discount to what was it's all time high.  Buy now at around $24 and it should rebound to the mid $30's or above once the geopolitical battles die down.  While waiting you get a reasonably safe 3% plus dividend too.  Now do not run out and put all your assets in this security,but certainly some assets would be smart to be here.  Be advised they pay an annual dividend in December.