This is a cautionary note about engaging in emerging market stocks. Three years ago, I bought PJSC Lukoil ($LUKOY) for a small dividend account I have for no real reason at all. I liked the dividend. I pretty much adopted an out of sight out of mind attitude.
I bought it for $85/share, collected the dividends, and watched it run up to $108/share. Aannnd then Putin invades Ukraine. It is now down 44% this year. Given what is going on with Chinese stocks like Tencent ($TENCY), I now believe there needs to be a change in our definition between developed v.emerging markets, and a change to democratic v. authoritarian markets.
Oh well, I will be doing some tax deduction harvesting at the end of the year.
Leave a Reply