Siluanov confessed that Russia would have to put certain projects on ice for the time-being to finance the anti-crisis plan. But Crimea will go ahead.
Russia sports a low level of sovereign debt—a mere 13.41% of its GDP in 2013, according to the Federal State Statistics Service.
Limited access to international capital and inflating external debts are just some of Russia’s banking woes.
Russia’s sovereign credit rating was downgraded from BBB- to BB+ on January 26 by global credit ratings agency, Standard & Poor’s.
Russia’s sovereign credit rating now stands on par with countries such as Turkey and Indonesia. The oil price crisis isn’t helping matters.
The continued oil price drop, coupled with the impact of Western sanctions that are fueling inflation in the economy, is wreaking havoc on Russia’s economy.
Investment-grade corporate bonds are relatively safe. If you want a higher yield than Treasuries offer, consider investment-grade corporate bonds.
Minimum-volatility and high-dividend funds provide cushion during market downturns. Minimum-volatility funds protect you value during high volatility.
Traditional low-beta sectors provide relative safety. They underperform when the broader markets are performing well and vice versa.
Holding cash is risky, as it provides negative real returns in the long run.
Gold is a safe haven due to lower correlations with risky assets.
US Treasuries provide safety, but they’re demanding a huge premium right now.
As growth in Europe nosedived, the European Central Bank resorted to monetary aid.
Stick with large caps, which look more attractive than small caps (IWM) at the moment.
Large caps are more profitable than both small caps and the broader markets.
Mega caps outperformed small caps in 2014. Choose mega and large caps over small caps.
Since 2011, natural gas production has increased even though the number of rigs has fallen. Drilling efficiency is one contributing factor to this trend.
The number of rigs in production is loosely linked to crude oil prices. The WTI price collapse has pushed active oil rigs off-line.
Falling crude oil prices are stirring things up for oilfield service companies. Consolidation to deal with the oversupply is one possible response.
Last week, the offshore rig count remained unchanged at 54. The offshore rig count is now 12 rigs shy of the four-year high of 66.