CMG Capital Management Group CEO Steve Blumenthal is quoted in the Investor’s Business Daily story Russia ETFs Reel From Crumbling Ruble, Rate Hikes. Excerpt fom the story:
“Raising rates is an attempt to attract foreign investors to buy Russian bonds at 17%,” thereby shoring up the ruble,” said Steve Blumenthal, CEO of CMG Capital Management.
Top-Heavy In Energy
The fortunes of Russia ETFs are closely tied to oil and gas; energy stocks make up 40% of RSX’s portfolio. The highly concentrated RSX’s top 10 holdings include Novatek, Lukoil (OTCPK:LUKOY) and Gazprom (OTCPK:OGZPY).
Given recent trends, many strategists advise investors to steer clear of volatile Russia ETFs for a while.
“A 200-day moving average stop loss would have protected investors and preserved capital” during the recent rout, said Blumenthal. RSX hasn’t been above the moving average since July 16.
Blumenthal added: “Consider re-entering when its price moves above its 50-day moving average.”