The concept of buying when there is “blood in the streets” is well-known to most investors, particularly as a figurative expression that calls for moving into beaten-down sectors when they’re really out of favor. Yet when there’s literally blood in the streets, it’s probably wise to steer clear of stocks in the hot zone. #-ad_banner-# Traders certainly steered clear of the hot zone between Russia and Eastern Ukraine at the beginning of the year. The Market Vectors Russia ETF (NYSE: RSX) tumbled roughly 25% in the first 11 weeks as the tensions between the former Soviet Union and … Read More
The concept of buying when there is “blood in the streets” is well-known to most investors, particularly as a figurative expression that calls for moving into beaten-down sectors when they’re really out of favor. Yet when there’s literally blood in the streets, it’s probably wise to steer clear of stocks in the hot zone. #-ad_banner-# Traders certainly steered clear of the hot zone between Russia and Eastern Ukraine at the beginning of the year. The Market Vectors Russia ETF (NYSE: RSX) tumbled roughly 25% in the first 11 weeks as the tensions between the former Soviet Union and Ukraine culminated with Russia annexing the Crimea region in strong-arm style. However, following the multiyear low in RSX in mid-March, Russian stocks have been strong performers. RSX is up 20% since its March 13 low, more than double the gains in the S&P 500 over the same time period. Renewed tensions in the region in July sparked by the shooting down of a Malaysia Airlines passenger jet by pro-Russian separatists caused another big sell-off. This quickly took RSX below its 50-day and 200-day moving averages, as once again the… Read More