Tracking the foreign investors’ behaviors is the perfect guidance when it comes to investing in Turkish assets. This is also explaining the asset prices hit the top where non residents’ holding of assets makes a boom, in contrary, the market dips where non-residents turn out to be bears.
According to the Central Bank of Turkey data, the amount of cash flows into Turkish markets hit six-month at the end of week ending 25 Sep 2013. We also saw JP Morgan upgrading Turkey to overweight at that week.
Shortly after, Turkey is listed among the most fragile economies of the world as BIITS, supported by the worse than expected inflation data. However, we had another investment analysis report by JP Morgan, advising its customers to buy Turkish equities.
It is hard to get a clear picture of where the market is heading into these days, but in my point of view Turkey is not a blanket buy anymore, even if some non-residents expect a rally.