White House Tells Investors Not to Invest in Russian Stocks as Russian Market Rallies

White House Tells Investors Not to Invest in Russian Stocks as Russian Market Rallies

First the White House meddled in the healthcare industry, and now it is telling people how to invest. White House Press Secretary Jay Carney told investors not to invest in any Russian stocks since the US imposed economic sanctions against Moscow.

“I wouldn’t, if I were you, invest in Russian equities right now, unless you’re going short,” White House spokesman Jay Carney said, half smiling, at a press briefing.

“They will also incur costs because of the sanctions that we and the EU have imposed,” Carney said.

The US implemented more sanctions against Russia after Moscow annexed Crimea from Ukraine. It placed visa bans and froze assets of eleven Russians and Ukrainians, but this did not make a difference to Moscow. The Russian Deputy Prime Minister laughed at President Obama, and President Vladimir Putin said he would impose his own sanctions against the US.

Obama said there will be more sanctions if Russia continues to violate Ukraine’s sovereignty. The White House thinks the sanctions will affect Russia’s economy, but the market said the opposite Tuesday. Russia’s market actually rose after Putin said he would not invade east Ukraine.

The Micex Index (INDEXCF), which slumped into a bear market last week, closed up 4.1 percent at 1,335.86, the strongest two-day gain since May 2010. Yields on government bonds due February 2027 fell 14 basis points to 9.22 percent. The ruble slipped 0.1 percent to 42.7758 against Bank Rossii’s target basket of dollars and euros.

Crimea’s acting leader Sergei Aksyonov said Crimea will introduce Russia’s ruble into circulation, and it will become the peninsula’s main currency in April.