Almost three weeks ago russian-georgian conflit started to solve out with military force. RTS index dropped below 1800 on the news. But today, when index dropped below 1550, we witnessed panic selling. Investors were selling bluechips as toxic waste. And that just for the russian recognition of South Ossetia and Abkhazia.

Yes, Russian step is step on the unpredictible path. Path where we don’t know what will be West reaction. This increases risk, but are investors overreacting?

Time will tell. In future “life” will come back to normal. And these days volatility will be seen as one time event. Event that is chased by long term investors.