Mulzar.com

The most beated down market in the world is no other than Ukraine, Russia’s neighbour. Ukraine has lost approximately 80% of its stock market value during the financial crisis. It takes me back to the days when Russia was almost going bankrupt. Russia had fallen around 90% when the BIG turn around came. If we have another Russia on our hand big fortunes will be made over the next decade. If the ukrainian stock market only performs half as good as russia did we have a big winner on our hands.

Lets review why Ukraine has plummeted the most:

1. Falling Steel Prices

2. Local Banking Problems

3. Threatened cutting of Russian Gas supply.

4. Real wages has started to fall for the first time in a decade making it hard for people to make their payments.

In other words it’s a dooms day scenario for Ukraine. On the other hand all the above factors are already baked in to the market. The Ukrainian stock market has lost 80% of its value, how much more is it going to lose?  When times are bad that’s when fortunes are made. I’m personally going to start by investing a tiny amount in a ukrainian “index” fund. I will hope for another tenfold bull run like the one between 2000-2006.

Tags: russia stock market crash 98, the ukrainian stock market hit the hardest by financial, the ukrainian stock market rose tenfold, ukraine worst performer 2008, worst stock market performer ukraine

This entry was posted on Monday, December 22nd, 2008 at 9:04 pm and is filed under Foreign Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.