Just received the following from Fleetstreetinvest. Unsure if it is more smart or funny to think about it.
Kazakhstan’s is the biggest economy in Central Asia. And it is one of the most energy-rich places on the planet. So its stock market took-off like a rocket in 2004 when energy prices started to rise. The index rose by a mind-blowing 1376% in the three years from mid-2004, as investors poured in. But Kazakhstan’s stock market has crashed nearly 80% over the last 12 months. What’s clear is that its stock market boom coincides exactly with the bull market in energy prices. Since the middle of last year, it has been hit by the collapse of commodity prices, the credit crunch and investors’ retreating from riskier markets. Now that the oil price is rising again, so is the Kazakh stock market – it’s doubled in 2009, as the circle on the chart shows. To get back to last year’s highs at 2876 from the current 1091, the index would have to rally 163%, And that could happen to any Central Asian market. These economies are tied to the price of energy and other commodities. That’s why it is time to buy into Central Asia…

BY MANRAAJ SINGH
Dear Reader, Central Asia is out of favour with investors at the moment. Markets across the region have tanked since commodity prices crashed last year. Now, though, Central Asia could offer you some of the biggest profits over the next year. Take a look at the graph of the Kazakh Stock Exchange below. It’s a picture of boom… and bust. But now the market’s coming to life again…
Kazakhstan’s is the biggest economy in Central Asia. And it is one of the most energy-rich places on the planet. So its stock market took-off like a rocket in 2004 when energy prices started to rise. The index rose by a mind-blowing 1376% in the three years from mid-2004, as investors poured in. But Kazakhstan’s stock market has crashed nearly 80% over the last 12 months. What’s clear is that its stock market boom coincides exactly with the bull market in energy prices. Since the middle of last year, it has been hit by the collapse of commodity prices, the credit crunch and investors’ retreating from riskier markets. Now that the oil price is rising again, so is the Kazakh stock market – it’s doubled in 2009, as the circle on the chart shows. To get back to last year’s highs at 2876 from the current 1091, the index would have to rally 163%, And that could happen to any Central Asian market. These economies are tied to the price of energy and other commodities. That’s why it is time to buy into Central Asia…

