Tuesday, February 27, 2024
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White House doles out investment advice on Russia

Is the White House now giving out investment advice? It appears so.

"I wouldn't, if I were you, invest in Russian equities right now, … unless you're going short," White House Press Secretary Jay Carney said Tuesday, in response to a question from a reporter.

The reporter pointed out the Russian market was on the rise, with Russia's key indexes, the RTS and the MICEX, gaining 4.18 percent and 4.06 percent, respectively, on Tuesday—and asked: "Is this a sign that the sanctions that we've taken are ineffective, if they're not really paying a cost?"

(Read more: Biden hits out at Russian 'aggression')

Despite increasing tensions of Russia's annexation of Crimea, Russian stocks are still up for the week, with the RTS gaining 8.79 percent and the MICEX up 7.73 percent. Bad news for anyone shorting the market.

(Read more: Another Crimea?Ukraine's neighbor asks to join Russia)

(When investors "short" a stock, it means they're betting it will go down. They borrow the stock from a brokerage firm, sell it immediately, believing they can buy it back later at a cheaper price. Going short can be extremely risky, because the stock could go up, and buying it back may cost you more than what you sold it for.)

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