How does a crisis create a great opportunity

I guess you must know the Ukrainian crisis, which is still exploding and the climax of it is the coming Crimea referendum tomorrow. Crimea will decide whether it wants to join Russia or still stays in Ukraine. It is almost a sure thing that Crimea will vote to join Russia. So in the past couple of weeks, the stock markets were tanking and gold was climbing up the wall of worry. Let me first make a bold prediction: when the result of the Crimea referendum is know on Monday, the stock market will shoot up and gold will tank, just reversing the course of the two at least in the very short term.

Now, this is not the main point of my today's blog. What I really want to convey to you is to pay attention to the Russian stock market and grasp the rare opportunity to make some good money from this crisis. It is rather complex to explain the situation but to simplify it, there are a couple of points in my mind that are critical and will lead to my conclusion why this is such a great opportunity:

• Russia is not Iraq or Libya that can be easily conquered by others. The US is not the sole superpower anymore as it used to be that can easily threaten anyone with force. In other words, there is almost zero chance that there will be a direct war between Russia vs US or EU for Ukraine.
• Economically and politically, it is definitely a loss-loss for Russia and for US/EU if the crisis continues with sanctions implemented. Russia provides 30-40% of the natural gas critically needed by the EU; This is also the critically needed income for Russia by exporting natural gas.  The US will need Russia's cooperation and support for many geopolitical crises around the world. If they are stuck with this Ukraine crisis, every side will suffer. So for the best interest of everyone, they will find a peaceful solution acceptable to each one. Right now it is just showdown for each one's face and no one wants to appear to be weak. But under the table, I'm sure a lot of negotiations are under way and you will hear a solution before long.
• The market will always overreact to any crisis. But none of the past crises in similar situations had any long-lasting effect on the stock markets. This is so-called headline risks for investment that people dump stocks simply due to scary stories appearing in the headline news. But in a few months from now, you probably will hardly hear anyone talking about it anymore. People have a very short memory, regardless of how devastating an incident is felt.

So if we understand this logic, what kind of the opportunity is presenting itself. Well, I think you should consider to buy the Russian stocks at some point in the next few weeks. The lower the Russian stocks go, the better it will be for your future profit! The Russian stock market was one of the cheapest in the world even before this crisis broke. It has since plunged another 10-20% and become cheaper. But there are a lot of values in this market. Think about Greece as an example. When its economic crisis reached its peak 2 years ago, no one wanted to touch anything from Greece. But do you know that the Greek stock market was one of the best in performance last year, increasing over 30%? I'm pretty sure Russia is in a much better position than Greece and when the crisis is over or forgotten by the world, its stocks will skyrocket. The best time to buy is when everyone is running away, not when everyone has realized that a bad situation has turned around. I don't think the best buying time is now but I think it is approaching and very near for the Russian stocks. One easy way to buy Russian stocks is via the ETF for the Russian stock market, RSX. Keep an eye on it!