You might be surprised to hear that the best performing major stock market this year is Russia – I know I am since my long shot prediction for 2009 was a major Russian financial crisis. The Russian stock market is up over 130% from its bottom. If you’re looking for the ultimate reflation trade you’ve found it in Russia. With a volatile economy that is highly levered to the price of oil you have all the ingredients of a high risk high beta reflation trade. But don’t get too excited – these high beta names give new meaning to the old saying, “what goes up must come down”…..
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.