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Please note: The Frank Talk articles listed below contain historical material. The data provided was current at the time of publication. For current information regarding any of the funds mentioned in these presentations, please visit the appropriate fund performance page.

Russia’s Mixed Bag Recovery

September 23, 2009

Temple of Christ the SaviorRussian consumer demand continued to fall during August. Retail sales were down 9.6 percent and investment demand fell more than 19 percent year-over-year, according to a recent report from UniCredit.

The data show further deterioration and raise the likelihood that the Central Bank of Russia will continue to support the economy through monetary easing, UniCredit says.

It’s really a mixed bag for Russia when evaluating data points. Russia’s unemployment rate is at an eight-year high of 8.7 percent, but that’s a full percentage point better than the United States’ unemployment rate of 9.7 percent in August.

Also, Russia’s economy underwent waves of industrialization during the 1930s and 1950s, which puts Russia well ahead of China and India in terms of labor productivity when the global economy ramps up again. However, long-term demographics show an aging population with declining life expectancy which could affect growth five or ten years down the road.

It’s likely an economic recovery in Russia will take some time. GDP growth is down 10.2 percent year-over-year while analysts are expecting a Q409 incremental growth of just 1.5 percent.

Russia’s biggest prospect for economic growth comes from beyond its borders. With an unrivaled amount of reserves of a number of important industrial resources, Russia’s ability to export these resources will likely chart its course of recovery.

It’s important to watch how the ruble performs during periods of commodity strength. As commodity exporters in Russia receive dollars and convert them to rubles, the local currency generally appreciates, lifting equities.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Net Asset Value
as of 09/28/2020

Global Resources Fund PSPFX $4.71 0.03 Gold and Precious Metals Fund USERX $13.14 0.11 World Precious Minerals Fund UNWPX $5.02 0.09 China Region Fund USCOX $9.33 0.14 Emerging Europe Fund EUROX $5.44 0.01 All American Equity Fund GBTFX $23.65 0.29 Global Luxury Goods Fund USLUX $16.64 0.31 Near-Term Tax Free Fund NEARX $2.25 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change