No longer “waiting for Godot”? Hottest market in the world over the last year is poised to go higher on upgrades from Moody’s and S&P. Let’s see…Moody’s put on hold yesterday but market doesn’t seem to care.
Ankara at dawn.
The investment grade upgrade from someone other than Fitch is still hanging in the wings. It will come but meanwhile Turkey is well ahead of itself.
International fund flows (most whimsical vs. foreign pension money leaving bonds and moving into equities which is structural) were major buyers last week.
Foreigners were net buyers of $268 million, after buying $6 billion of equities in 2012. Year to date purchases reached $466 million so far in 2013 – backward looking? Maybe.
Turkey is a fundamentally sound and a fantastic place to invest but stocks are way overbought here.
Readers can gain overall broad access to Turkey through the iShares MSCI Turkey Index Fund (TUR, quote) ETF.