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Russian war games: Take advantage of growing hostility

Today's Financial News - Posted November 25, 2008

Russia is making bold steps. Its leaders are traveling across the globe in an effort to gain support and unify America’s enemies. Investors have a rare, but proven, opportunity to take advantage of the situation.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): Russia is doing all it can to spit in America’s eye. First, it sells a boatload of arms to Iran. Then it raises its hackle about America’s missile-defense system. Now, its navy makes its first mission to Latin America since the end of the Cold War.

The economically desperate country is working overtime to flex its military and political muscles in a time when America is tired and burdened by a domestic emergency. Medvedev and his powerful sidekick, Putin, are touring the globe creating alliances with nearly all of the countries that stand against American power.

This week, the country’s president will make stops in Brazil and Cuba. But most importantly, Medvedev will be in Venezuela where he will ink an energy deal with Chavez, the country’s nasty anti-American president.

A unified enemy

The new plan calls for Gazprom to work hand-in-hand with Petroleos de Venezuela to become a leader in Latin American energy production. Plummeting oil prices will make it tough for the deal to pay off in a way that would pose a threat to any American stakeholders.  Still, it is impossible to deny that this is an opportune time to take advantage of American weakness.

That is exactly why Russia sent a naval task force to the region. A round of war games involving two nuclear-armed vessels is bound to get American attention.

Russia is doing everything it can to show the incoming administration that it remains a global powerhouse. Whether the threat is contained merely in Russia’s collective mind or if America really does need to take action, is yet to be determined.

One thing is for sure, Russia will continue with its antics. In fact, they are only going to get worse.

When Obama moves to Washington in less than two months, leaders from across the globe will want to know how he will guide America’s military. The only way they will find out is by testing the rookie leader.

Russia will be the first to assess the situation. As Americans we need to fight off the threats. As investors, we need to take advantage of them.

Profit from hostility

We already saw what happened when Russia invaded Georgia over the summer. A handful of Eastern European company’s rewarded their investors with handsome gains. The next threat will be even larger and the invasion even stronger. Now is the time to position your portfolio to take advantage of the action.

There are dozens of companies to choose from. Smart investors will find the companies positioned to win as Russia meddles with its natural gas exports. Even smarter investors will read the report I recently wrote on the subject.

The global political environment is quickly reshaping itself. Under the Bush administration, America was viewed as an overly powerful bully. With Obama at the helm we appear much, much weaker.

Whether we truly are losing superiority does not matter. All that investors need to care about is Russia will continue with its antics. And that means market volatility and increased profit opportunity.

Take advantage of the situation.


Next Article: Sirius XM (NYSE:SIRI): Is this a buying opportunity?

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