Russian stocks are at two year lows after declining over 40% from their May high. The dollar-denominated RTS index skidded 7.5% on Tuesday and fell another 4.4% on Wednesday.
Reports this week in the Wall Street Journal cite falling oil prices and geopolitical tension as catalysts for the decline.
In Investor’s Business Daily, Trang Ho also picked up on the news in the story More Downside Expected For Russia. Ho notes that Market Vectors Russia (RSX), the only pure-play Russia ETF traded in the U.S., has plunged 46% from its May peak and 37% year to date. RSX is heavily concentrated in oil and gas stocks which have declined in line with commodity prices.
See Investing in Emerging Markets with ETFs for more.