Risk Off: Russia
Even though Canada, Norway and Russia are all major petroleum exporters, Russia’s ruble is getting hammered compared to the Norwegian krone and the Canadian dollar. The ruble isn’t just reacting to oil, it’s reacting to Russia’s perceived risk in general. Canada and Norway have low risk, stable governments and strong rule of law. Look at the resilience of their currencies in the face of a strengthening dollar and falling oil prices.
Swiss to Buy Gold?
“A ship is always safe at the shore – but that is not what it is built for.” ― Albert Einstein
What We’re Reading:
Is OPEC A Toothless Tiger? (Forbes)
The Global Shakeout From Plunging Oil (The Wall Street Journal)
Bond Funds Load Up on Cash (The Wall Street Journal)
Oil Slump Weighs on Markets (The Wall Street Journal)
Black Friday, Cyber Monday sales data mislead investors (MarketWatch)