EASTERN Europe is being touted to investors as the 'Asia of 15 years ago', but only the most dedicated bargain hunters are expected to prospect for opportunities in formerly communist countries.
The former Eastern Bloc's emerging stock markets and its privatisation of state assets - along with volatility in Asian markets - are cited by fund managers as reasons the region is a good place to put some cash.
Investors are attracted by double-digit or triple-digit yields, but the risks are high in an 'extremely volatile' market, where traditional rules and regulations do not always apply.
Russia was the best performing of all emerging markets in 1996, with stock prices soaring by 450 per cent. They have risen another 230 per cent so far this year, but slid 6 per cent in recent months.
The Czech stock market was down 19 per cent earlier this year, but recovered 2 per cent in the past three months. Hungary was up 42 per cent before sliding 13 per cent in that three-month time-frame, while Poland - once a favourite - has dropped more than 9 per cent this year.
Obviously, investing in Eastern Europe is a roller-coaster ride, but international fund managers are still piling into Russia, and new Eastern European funds are still being launched.
