I mentioned back on Aug. 12 that The Kelly Letter was watching to buy weakness in Russia. Watching was the key word. We’re still waiting to wade in, but haven’t yet.
I wrote to subscribers in the Aug. 24 note:
Georgia remains under Russian occupation. Russia claims that it has withdrawn enough troops to meet the obligations of the ceasefire, but has stationed peacekeeping forces around South Ossetia to “prevent new bloodshed.” The U.S. and Georgia say the partial withdrawal is unacceptable and “absolutely not with this peace accord.”
Since it invaded Georgia, Russia has experienced the deepest drop in foreign-currency reserves in its history. The [Russian investment] that we’re watching fell 5% during the week, but is still hovering around $40 as it’s done for two weeks. It got down to $39.23 on Tuesday and closed Friday at $39.47.
We still haven’t bought, and good thing. Yesterday, the investment closed at $34.56 as the U.S. considers sanctions against Russia.
