Tuesday, September 16, 2008

The Real Market Pain

Think the US stock market stinks? Check out Russia today. The MICEX is down over 50% this year. Why? Because "corrupt petro state + falling oil prices = you're screwed." Combine that with government expropriation of property and creeping authoritarianism and you've got a recipe for an emerging market tailspin. Would've helped to follow my rule #12.

If oil prices continue to fall expect the destabilization of Venezuela, Iran, and Russia to accelerate.

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