Morgan Stanley highlights 16 emerging markets banks, eight of which it is bullish on. That group includes China Construction bank as well as Indian, Russian and Turkish banks.
Currently, Turkey is experiencing rising inflation, slowing growth, increased fiscal expenditures, high unemployment and a dip in export competitiveness. The economy is expected to only expand 3% this year. Turkish stocks are viewed as inexpensive to the broader emerging markets universe although earnings estimates for some companies there are rising.
Related: More Tumult for Lone Turkey ETF
“The short-term trend is up for the EEM and probably a number of market observers and commentators will be bullish and talk about an inverse head-and-shoulders bottom, but I don’t feel comfortable recommending a long position here. If you are long, I would have a trailing sell-stop order,” according to TheStreet.com.
iShares MSCI Emerging Markets ETF
