Yaser Anwar_

A Look at Emerging Markets: Eye on Turkey

You have failed to touch on why the ETF is so volatile and an issue without which analysis is incomplete- the currency. The ETF's volatility has largely due to the volatility in the Turkish Lira. That said, I'm pro-Turkey, especially their food sector. Companies are profitable, de-levering and trading at lower multiples vs. European counterparts. Also, recently EU removed taxes on exports from Turkey to the union, which should further bolster the food exports.

WMT is looking to enter Turkey too + one of Templeton's Emerging Market funds took a 10% stake in KOC Holding's food division. Plus, another issue you didn't mention, the country's aim to get into EU, which has attracted substantial FDI, and the AKP will try to further satisfy the requirements.

Long Turkey for me, but I prefer pure plays. Y