Investors run into problems buying the dip on Russian stocks and ETFs – The Average Joe

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    Investors run into problems buying the dip on Russian stocks and ETFs

    victorlei

    March 8, 2022

    ukraine

    Those who bought the initial dip in Russian stocks are now finding them hard to sell — even impossible in many cases.

    What’s the big deal? Russian stock markets have been shut down for over a week now — and Russian stocks and ETFs trading on global exchanges have dropped off a cliff since the invasion began.

    Most Russian ETFs trading on North American exchanges have been frozen or delisted — some funds even starting to shut down. Here’s what it means for investors…

    • Investors will have to wait until trading is resumed to sell — per COO of HANetf (via FT).
    • If an ETF or fund liquidates and shuts down, investors get back whatever cash is left — which could mean large losses.

    Those holding Russian assets may be forced to sell at very low prices — if it’s even possible — or risk them going to zero as per Cristian Maggio of TD Securities (via FT),

    Pros got caught too: Even large investment funds are facing steep losses from buying the initial dip.

    State governors have called on pension funds to sell all Russian holdings — which make up a small portion of their portfolio — i.e. California’s pension fund, Calpers, has less than 0.2%.

    Nuclear war: In a research note, BCA Research assigned a 10% chance on a nuclear war in the next 12 months:

    • Putin is committed to a regime change in Kyiv — and anything less would be defeat.
    • “If Putin concludes that he has no future, the risk is that he will decide that no one else should have a future either”.

    Hedge fund manager, Bill Ackman, warned (via CNBC) World War III has “likely already started” — but there’s still much more we can do before it escalates.

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