Russian outlook is poor

Russia remains a no go area for emerging market investors even though a devalued rouble has made companies extremely cheap. In response to Russia's political, social and economic problems, fund managers are underweight the market or avoiding it altogether. Although the local economy has improved since the collapse of the rouble in August last year, they are still bearish. Only minor positives, led by a firmer oil price, are preventing a mass exodus of investment from Russia. According to Michael Russell, group economist at City of London Investment Group, firmer oil prices are having ...