copyright1997reloaded
Thinks s/he gets paid by the post
I am curious why the etfs are being traded for so much more than NAV.
Anyone have a theory?
My thinking is moex is closed because Putin and his oligarchs want to figure out how to buy these company’s back for either oligarchs or the state for Pennies on the ruble so to speak.
Because the NAV is meaningless as the underlying securities don't have a market. For a few days, only sell orders were allowed.
I haven't tried to play this game of roulette, but the underlying assets do have real oil and gas and some intrinsic value. Whether that means the equities have any value is another question. There are tons of ways that the stockholders (especially foreigners outside of Russia) get wiped out. I am bothered that government entities can just declare that they can't be traded. But the mentality seems to be that wiping out the value of American ownership (via RSX etc.) is a "good thing". Sort of like the mentality of pouring out Russian Vodka (that you already paid for) and for which ironically was made in Poland by someone who is an enemy of Putin.
In no way to I like or support what is going on in Ukraine. But I am fearful of the unintended consequences of what is going on. If I were a leader of a country, I would be looking VERY carefully at a) having alternatives to the $ for reserve currency b) allowing American companies to control technology infrastructure or other aspects of the country. c)Make sure my country's assets can't be seized by other countries.