TUR - TUR: Turkish Equities Could Present A Contrarian Long Opportunity
- Turkish equities have not moved much in 2020, however they have collapsed in international FX terms.
- USD/TRY and EUR/TRY continue to appreciate. Indeed, all G10 currencies have appreciated against the lira between 40 and 60% this year.
- Nevertheless, while consumer confidence remains low in Turkey, it might have bottomed out, while broader economic confidence has improved.
- With a return of domestic confidence, there is a chance that the weaker lira will begin to support the Turkish current account and real growth.
- Longer term, we may see a return of foreign investment into the country. While local inflation is high, G10 currencies have strengthened against the lira by far more in percentage terms. With some lira stabilization, TUR may present an interesting contrarian-long opportunity.
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TUR: Turkish Equities Could Present A Contrarian Long Opportunity