“If you’ve looked at the Ukranian government over the past 10-15 years, you know what I’m talking about.” Rogers identifies an important principle in bottom fishing. The stocks have to be damaged, the negative catalyst has to be external, but the underlying health of the government or business has to be sound and have some hope of upside. Suffice it to say, Rogers is not optimistic.
Just to give the other side of the equation, Mark Mobius remains bullish on Ukranian stocks, writing in March that despite the political problems, Ukrainian stocks have returned a surprising 20% gain for the year. Mobius, Chairman of Templeton Emerging Markets Group, said, “My team and I continue to be interested in Ukranianequities where we see opportunities on the individual and company level.”
So investors, take your pick. Is Mobius right or Rogers?
- Source, http://jewishbusinessnews.com/