Interesting Oksana Gafaidi read the yields of the American and Russian stock markets. You will probably be interested too.
I received such a question from Viktor Vedibeda (vedibeda): Hello, Oksana! An article was published on the blog of the "Lazy Investor", where the author analyzed the profitability of US and Russian stocks, and it looks like this,that Russian stocks are much more profitable than American. It makes you wonder about the desire to enter the US market.. Yes, there is more choice and stability, which in relation to shares does not matter, but…
Trade and rummage among thousands of stocks with returns 2-3% (and even then not always), why? Maybe, trade Russian stocks and not bother? I read your opinion on America, but no one made comparisons. Please comment if possible, you are welcome.
Victor, thanks for the thoughtful question. As they say, a picture replaces a thousand words. So let's take charts on the US index S&P 500 ($SPX) and the Russian RTS index ($RTSI) in US dollars. We will look at these charts., so you get, invest in these indices (read: market) 10 And 20 years ago.
First graph: S&P 500 ($SPX) and RTS ($RTSI) behind 10 years
The upper window shows graphs of price changes S&P 500 (the black) and RTS (Red), in the bottom - the performance of the indices for 10 years. As seen, if you 10 years ago invested in the Russian market, then these investments turned out to be unprofitable for you (minus 41% for the current day). At the same time, betting on the American market would bring you 59% return on investment (excluding dividends) for the same period.
Second chart: S&P 500 ($SPX) and RTS ($RTSI) behind 20 years
Everything is the same here: in the upper window - graphs of price changes S&P 500 (the black) and RTS (Red), in the bottom - the performance of the indices for 20 years. As seen, on the horizon 20 years of investing in Russian stocks would be more profitable for you, than in American papers. But here it is important to consider, that a great contribution to the profitability of the Russian market was made by the rise in oil prices. To 2008 year in the United States has not yet had shale, and Russia as a raw material country felt better than America.
Hope, comparing these graphs helped you see the bigger picture and decide, is it worth "bothering" with American stocks. With regard to market selection, then he is not so principled: you can earn in Russian, and in the American market. As for me, it is much more important to choose the right moment to enter.
