Periodically at Emerging Money we examine spread relationships. EEM/SPY is the big picture one, but intra market-making country spread calls are often highly effective for reasons that are both rooted in fundamentals and also technical and market timing factors.
Investors looking for exposure to Turkey’s fast-growing market have limited opportunities in the United States.
Other emerging countries may be printing money to stimulate their economies and weaken their currencies, but Turkey is a winner right now for refusing to race to let its exchange rate race to the bottom.
Welcome to the last emerging markets heat map of the first quarter. Global markets have started off to the upside as traders square their positions ahead of the month end and hunt bargains after the last few days’ selling. Nearly all the big boxes are in the green with PBR 0.83%, FMX 1.29% and MPEL 2.26% displaying notable strength on the Emerging Stock index.