Oil and Russia Update

Oil and Russia Update

We believe Russian equities are well positioned to recover quickly post Covid-19, especially if that coincides with a reduction in global oil supplies. There is a chance we could see favorable conditions for Russia towards the middle of the year as OPEC production cuts could increase at the same time as small energy producers move offline and Covid-19 cases begin to diminish allowing for supply/demand normalization.

Investment Considerations — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.

Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.