All of this comes at a time when the Russian government is seeking to add stability to the country's economy. Late last week, word had surfaced that the nation was in talks to put together a bank bailout rivaling that of the United States.
Igor Shuvalov, the deputy prime minister of Russia has considered taking a stake in the nation's biggest banks to recapitalize the problematic system and protect it from nonperforming loans that currently make up a large portion of its balance sheet. Moody's(MCO - commentary - Trade Now) andStandard & Poor's warn that it could cost the nation as much as $40 billion this year to get the banks running again. If the proposed bailout does go according to plan, however, the government predicts that banks will be able to lend again in 2010.
Russia's government has taken some serious steps in the past few weeks to get its economy moving. However, investors may want to be careful jumping in as the government's decision may cause trouble for the country's markets. RSX may see bright times in its future, but investors should be prepared for some uncertain moments if they try to cash in.
Meanwhile, even if the Russian casinos are gone, that doesn't mean the country is vice-free. Smoking and alcohol consumption is still as present as ever in the nation. Investors looking for a taste of these and other guilty pleasures can look no further than the aptly named Vice Fund (VICEX - commentary - Trade Now) to add a little sin to their portfolio.