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04-06-2011 09:24 AM

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The benchmark RTS index has lost 46 percent of its value since its peak in May, representing a paper loss of about $700 billion for Russian companies. Much of that decline has come since the war in Georgia and the subsequent war of words with the United States and Europe that unsettled foreign investors Men's True Religion Straight Leg jeans, who began withdrawing capital.
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The underlying problem for the Russian stock market is that about 80 percent of the shares are in companies exporting commodities with a history of boom-bust cycles. Additionally, the risk premium for investing in Russia has risen with the war.
It is unclear which problem caused more damage. In one indication that Russian politics lubricated the market slide here Cheap True Religion Jeans, however, investors have pulled nearly $5 billion this year from emerging market funds with a heavy Russia weighting, according to EPFR Global Men's True Religion Bootcut, a company that tracks fund flows. By comparison Women's True Religion Petite, investments in Middle East and African funds, which are also seen as dependent on commodity
(Excerpt) Read more at nytimes.com ...
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