Investing is all about time frame and comparative value. Even if you are investing in a really solid company, if you bought in at a high enough level, there is really not much room left for the company’s stock to grow. At best, your stock will be trading sideways for a long long time. At worst, it can only head in one direction which is down. Neither of these situations is attractive to the typical investor, as it should be.
The same analysis should apply to the overheated US stock market. Since the Dow Jones industrial average has been setting record after record and the NASDAQ 500 has breached its historical high point, it obvious that the US stock market is overbought. It is overvalued. The name of the game has been to look for underperforming stocks and try to ride them up.
However, if you are looking to play the broader market, there is really not much room to maneuver. The good news is that there is a highly attractive alternative investment. However, you have to have a strong stomach. As this market can zoom up, it has demonstrated in the past its ability to crash just as quickly. I am, of course, talking about the Russian stock market.
In 2015, the Market Vector Russia ETF has posted a nice appreciation from around $14 all the way to around $18. This is a decent appreciation considering the bad geopolitical news surrounding Russia. In fact, there is no shortage of bad news regarding the Russian Federation. Whether it is the bad effects of the economic sanctions leveled against it or the political fallout of the recent murder of a prominent Russian opposition leader, you need to look past the scary headlines and look at solid numbers. It appears that the Russian stock market has reached its bottom, and it is beginning to look that there is nowhere to go but up. It is precisely at this stage that Russian ETFs start looking good. You might want to look into this.