Turkey is on its way to becoming a stronger player on the global
stage. But for its exchange traded fund (
) to keep moving in an upward direction, reforms need to stick.
What Turkey has going for it:
Scott Anderson for FXStreet reports that
strong domestic demand has overcome a widening trade deficit,
which itself is a sign of increasing economic activity. Investors
have returned to Turkey, and the lira's appreciation fhas helped
to keep inflation contained. In turn, the central bank has been
able to keep interest rates low to support economic growth.
On the downside is political shifts in the country and what
impact they will ultimately have.
Reza Aslan for
The Los Angeles Times
Turks voted overwhelmingly for constitutional changes pushed
through by the moderate Islamists of Prime Minister Recep Tayyip
Erdogan's Justice and Development Party (known by its Turkish
initials AKP). Most importantly, the reforms reorganize the
structure of the court system, providing greater legal protections
for ordinary citizens while stripping the military of its immunity
against prosecution in civilian courts. [
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iShares MSCI Turkey Index (NYSEArca: TUR)
For full disclosure, Tom Lydon's clients own TUR.
Tisha Guerrero contributed to this article.