Russia is Booming

“Oil men and investment bankers are throwing money around expensive nightspots in Moscow these days as investors crowd into Russia again to get a slice of the action in one of the world’s hottest economies,” reports Agence France-Presse.

People used to laugh when I told them the title of my first published book was How to Profit from the Coming Russian Boom (McGraw-Hill, 1993). But the Russian Boom I predicted has arrived at last. Too bad my book is out of print. This boom won’t put any money in my pocket. But I still get to say, “I told you so.”

“[Russia’s] national income has grown consistently since 1998, and growth is expected to be a sprightly 6 percent this year,” enthuses The Economist (“Russia Comes in from the Cold,” October 9, 2003). Russia’s national debt “now stands at around 30% of national income (In contrast, Japan is burdened with debts equal to 150% of national income.)”

More to the point, Moody’s Investors Services — one of the Big Three credit-rating agencies — stunned the financial world on Wednesday, October 8, by granting Russia an “investment grade” debt rating. This means that leading investment funds whose charters permit them to buy only “investment grade” bonds may now put money in Russia.

“It is just the latest sign of a growing enthusiasm for Russia, particularly among foreign investors,” notes The Economist.

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