HH A Taste Of Turkey ETF On Thanksgiving

The great quote ‘what’s in a name?’ by William Shakespeare probably falls inappropriate in some cases. Let us say why?

Thanksgiving is today, and demand for turkey is high. While turkey is good only for a blessed dinner, investors can give special attention to a specific country named ‘Turkey’ on Thanksgiving – for any insightful investing opportunity – thanks to the similarity in name with the bird turkey, which is a must for most Americans on the special day.
 
For those investors we would like to dish out the economic and the stock market outlook of the equities and ETFs of Turkey. The timing is also apposite as the pure-play Turkey ETF iShares MSCI Turkey (TUR) has gained about 2% in the last month (as of November 23, 2015) though the product is down about 23.8%.
 
What’s Behind the Recent Bullishness? 
 
The Turkish market has been enjoying a bullish stretch recently thanks mainly to political hopes. Its ruling Justice and Development Party (AKP) won a surprising majority in this month’s election to rule till 2019.
 
The significant win put an end to the months-long political unrest and boosted the demand for risky assets in anticipation of a stable government. In fact, consumer confidence in Turkey also leaped post AKP’s win (read: Can Turkey ETF Survive Political Woes?).
 
Economy Edges Up
 
This once-woebegone economy is also sending positive vibes on the economic front. In October, its government doled out the Medium-term Economic Program and the Financial Plan for 2016–2018, wherein softer growth targets were mentioned but increased spending on social policies and defense areas was also hinted at, per Organization for Economic Cooperation and Development (OECD).
 
Investors should note that the Turkish economy, normally known for its wide current account deficit, recorded the ‘largest surplus in six years’ in September breezing past both year-ago number and analysts’ expectations. Persistently weak oil prices and a soft import demand led to this jump.
 
Notably, slumping oil prices is vital to the Turkish economy as the country imports more than 90% of oil for about 70% of its total energy needs. Imports fell 24.4% in the month – the steepest monthly plunge in five years – which in turn lowered trade deficit.