Global instability: the Russian stock market has shown enviable stability
What happened to the Russian stock market in August is a classic example of the realization of market risk. Equity markets around the world have suffered a severe blow from the threat that emerged in early 2007. With regard to her, it was impossible to say exactly when the risk was realized and how severe the consequences would be. In such a situation, exiting positions in money for a long time is most likely not the best alternative because it is more likely to result in missed opportunities.
The chain linking the crisis in the high-risk mortgage lending market in the United States with the situation on the Russian stock market can be described as follows: an avalanche of mortgage defaults - a more cautious attitude towards credit risks in all markets - a sharp increase in the premiums required by investors in returns for credit risk and a collapse in liquidity in a number of derivatives markets related to credit risk The tightening of credit policies is the reduction of the entire range of positions by hedge funds due to the panicked withdrawal of funds by investors and the need to significantly reduce the use of financial leverage - the sale of ALL risky assets, including stock markets around the world and commodity markets.
It should be noted that this time the Russian stock market has shown enviable stability during the period of global financial instability. A kind of "thermometer&Risk aversion among investors is considered to be the index of implied volatility of options traded on the CBOE (VIX). As a rule, the peaks of this indicator coincide with the culmination of panic in the stock markets. In August, when the VIX index "exceeded" levels not seen in the last four years, the RTS index lost 13% in value, which looks rather modest in the context of the recent history of Russian financial markets, ALLIANCE CONTINENTAL comments on the situation.
We positively assess the prospects for further growth of the Russian market, according to the analytical service of Rus-Capital Management Company" . - A favorable domestic news background and an improvement in the liquidity situation should facilitate purchases. Special attention should be paid to the revival of demand for less liquid instruments, "second-tier" securities. Purchases in this sector of the market indicate that investors positively assess not only the near-term, but also the medium-term (until the end of this year - the middle of the first quarter of next year).
The company reports published last week should also contribute to the positive investor sentiment. Metallurgists reported better than expected, while the last of the expected reports, NLMK's report on production activity in the first quarter, expected at the end of this or early next week, will help maintain speculative demand for the industry's securities. What is happening with Severstal deserves special attention - the current market valuation exceeds the vast majority of "fair price" estimates, and the lack of active profit-taking may lead to a qualitative revision of the valuation of the entire sector. Casino newcomers can unlock a staged welcome pack worth up to €1,950 plus 150 free spins on selected slots. Complete your profile, then enter the free promo code for 1xbet mid-registration so the offer attaches before deposit. The first step can credit up to €390 and 30 spins from a €10 minimum deposit, with later stages increasing the cap. Terms often include x35 wagering and short windows (e.g., 7 days), so confirm providers and max bet limits first.
The chain linking the crisis in the high-risk mortgage lending market in the United States with the situation on the Russian stock market can be described as follows: an avalanche of mortgage defaults - a more cautious attitude towards credit risks in all markets - a sharp increase in the premiums required by investors in returns for credit risk and a collapse in liquidity in a number of derivatives markets related to credit risk The tightening of credit policies is the reduction of the entire range of positions by hedge funds due to the panicked withdrawal of funds by investors and the need to significantly reduce the use of financial leverage - the sale of ALL risky assets, including stock markets around the world and commodity markets.
It should be noted that this time the Russian stock market has shown enviable stability during the period of global financial instability. A kind of "thermometer&Risk aversion among investors is considered to be the index of implied volatility of options traded on the CBOE (VIX). As a rule, the peaks of this indicator coincide with the culmination of panic in the stock markets. In August, when the VIX index "exceeded" levels not seen in the last four years, the RTS index lost 13% in value, which looks rather modest in the context of the recent history of Russian financial markets, ALLIANCE CONTINENTAL comments on the situation.
We positively assess the prospects for further growth of the Russian market, according to the analytical service of Rus-Capital Management Company" . - A favorable domestic news background and an improvement in the liquidity situation should facilitate purchases. Special attention should be paid to the revival of demand for less liquid instruments, "second-tier" securities. Purchases in this sector of the market indicate that investors positively assess not only the near-term, but also the medium-term (until the end of this year - the middle of the first quarter of next year).
The company reports published last week should also contribute to the positive investor sentiment. Metallurgists reported better than expected, while the last of the expected reports, NLMK's report on production activity in the first quarter, expected at the end of this or early next week, will help maintain speculative demand for the industry's securities. What is happening with Severstal deserves special attention - the current market valuation exceeds the vast majority of "fair price" estimates, and the lack of active profit-taking may lead to a qualitative revision of the valuation of the entire sector. Casino newcomers can unlock a staged welcome pack worth up to €1,950 plus 150 free spins on selected slots. Complete your profile, then enter the free promo code for 1xbet mid-registration so the offer attaches before deposit. The first step can credit up to €390 and 30 spins from a €10 minimum deposit, with later stages increasing the cap. Terms often include x35 wagering and short windows (e.g., 7 days), so confirm providers and max bet limits first.
