At Emerging Money we have written significantly on Turkey and discussed the challenges of their macro struggles. In short, we have guided investors towards a view that Turkey is not broken but will be noisy on politics and that the investment time horizon will be over the next 12 months, not 12 weeks.
As a witty Twitter follower hit me after I poked fun of the late call: “..and in other news the S&P picks Seahawks for the Superbowl”.
What was recently their secret weapon to outperforming the S&P on EPS is now a headwind but is it a hurricane?
The Emerging Money EM FX Basket (EMFXB) is a GDP weighted index comprised of the eight most volatile primary currencies in EM.
In Turkey today, the CBT announced in the middle of the morning session that they would conduct an emergency meeting tomorrow which has in turn sparked a (short covering?) rally in the currency.
DXY index is off -85bps in afternoon trading, but that doesn’t mean the USD strength devastation is not being felt across the world.
A floating exchange rate prices a nation’s currency against other currencies according to supply and demand in the foreign exchange market. Providing policymakers with a critical tool for protecting their economies, this mechanism is used by most developed markets as well as some of the larger emerging markets.
Turkey is still one of the most crucial markets out there, but after its recent wild swings is it a bargain or a profit-taking opportunity? That is the topic on this week’s Trading the Globe.
Bombed out heavyweights or two of the highest-quality markets in the world, Turkey and Chile are in focus on today’s installment of Trading the Globe.