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Thursday August 26, 2010
Turkey ETF (TUR): The next Brazil?
by Jim Powell, editor Global Changes & Opportunities Report  Turkey is a country that nearly everybody overlooks -- but probably not much longer.And the best way for investors to take a position in the country's growth is with the iShares MSCI Turkey Investment Market Index (TUR). The ancient nation is rapidly becoming a major Middle Eastern power and an important European power at the same time And yet, very few investors are paying attention. Those who are stand to make excellent long-term profits as Turkey continues to develop. Turkey is the 17th largest economy in the world. Its GDP is also a third again larger than oil-rich Saudi Arabia and four times the size of Israel's. 
Islam is the predominant religion in Turkey. The fundamentalists are unpopular in the cities, but they have support in the countryside. It's a tension that won't go away anytime soon. Nevertheless, thee country is managing to remain secular. Turkey is also a constitutional democracy, a member of NATO, part of the G-20 economic forum, and occupies a role in several Middle Eastern economic organizations. Despite being a larger economy than many European countries, Turkey has only been granted associate membership in the EU. The country has always been at the crossroads between Europe and the Middle East. However, in recent years, it has leaned heavily towards the West. Turkey is already a strong moderating force in the Middle East, as well as a source of funds and business expertise. The country's recent spat with Israel is unlikely to last very long, as Turkey has always had good relations with Tel Aviv. I believe Turkey is in the same economic position today as Brazil was a few years ago. It's on the edge of an explosion in growth. If rapidly-developing BRIC countries were being constituted today, I think Turkey would be a fifth member. Turkey has many attractive companies that are on its stock exchange. However, I think the best way for investors to take a position in the country's growth is with the iShares MSCI Turkey Investment Market Index. The ETF tracks nearly all of the country's promising stocks. The ETF is already doing well, but investors should not feel as if they missed the boat. Developing nations often deliver profits for decades, albeit with corrections that can be scary. Long-term investors in Turkey who ride the ups and downs should enjoy excellent returns. Learn more about this financial newsletter at Jim Powell's Global Changes & Opportunities Report. |
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