By John Helmer, Moscow
The Hillary Clinton effect – war with Russia on all fronts – destroyed billions of dollars in the equity value and market capitalization of Russian corporations. The collapse in the international price of crude oil, to which the Russian stock market index is usually tied, accelerated the decline.
But starting a year ago, a novel Russian effect appeared in the market. The trend lines – yellow for the Moscow MICEX index, blue for oil — began to diverge. Russian stock prices started climbing, crossing the downward movement of the oil price (lead image, top right, 1-year chart) and continuing upwards even when oil’s gains were reversed.
That is what professional investors and brokers call the Russia re-rating effect. And it commenced long before Donald Trump was elected US President on November 8 (lead image, lower right, 1-month chart). Trump’s victory turns out to have been a one-day wonder, a blip on the chart of the Russian stock market revival. So, if Trump is ready to put a stop to the US war on Russia – or even if he isn’t — is there a Russian boom coming? Yevgeny Gavrilin (lead image) says there is; on the internet he’s calling it Boomstarter.ru. (more…)























