The iShares MSCI Turkey (NYSEArca: TUR) is on a six-day winning streak after a sharp pullback that started in mid-January.
“With Turkey exhibiting positive demographics, strong consumer demand and an open, competitive economy, the country is at a figurative, as well as literal, crossroad between Europe and Asia,” says Frank Holmes, CEO and chief investment officer at U.S. Global Investors. The firm manages the Eastern European Fund (EUROX).
The Turkey ETF was one of last year’s top performers in emerging markets with a 65.6% rally in 2012, according to Morningstar data.
However, one reason for the recent weakness in TUR is a lower Turkish lira versus the U.S. dollar.
In Turkey, investors will keep a close eye on the country’s current-account deficit and the European economy, Barron’s reports.
However, Holmes says after a decade of fiscally responsible actions, Turkey is the picture of a growing prosperity.
“Investment managers like me aren’t the only ones showing increased interest in Turkey. Secretary of State John Kerry visited Turkey this week during his first overseas trip as America’s top diplomat,” Holmes wrote in a blog post.