Douglas Helfer: Russian Stocks at Attractive Valuations
Douglas Helfer, senior fund manager at HSBC, presented the bullish case on Russian equities while they are at the low end of their valuation range in an interview on CNBC today.
Helfer said recent developments in the privatization of Russian companies are a positive for the economy and stock market. With election out of the way, political risk has subsided, Helfer added.
Helfer pointed out Russian stocks are trading at an average PE of 5, which is extremely attractive given their historical range.
Russia is largely a commodity driven market, but Helfer said there is an emerging middle class of consumers driving a consumption boom. GDP per capita has risen from $2,000 to $15,000 annually in the past 10 years according to Helfer.