- Turkish equities are volatile, but investors do not appear fearful.
- TUR is a fund that invests in Turkish equities but has suffered from rapid USD/TRY appreciation (TUR shares are USD-denominated, thus its TRY-denominated holdings are falling in value, in USD).
- As net flows into TUR appear roughly positive or stable over the past year or so, I do not detect strong negative sentiment here.
- Instead, I think TUR remains a bet on USD/TRY depreciation (if you are long); I do not think TUR offers great fundamental value at present prices.
- A breakdown below $18/share could be interesting, provided that this does not coincide with further (and commensurate) appreciation of USD/TRY (currently: 13.49).
For further details see:
TUR: Turkish Equities Are Likely Trading At Fair Value