Turkish Stocks

[robertbanking]

Hello you very wonderful and intelligent people that make up this forum. I sincerely hope you are doing well.

I was wondering with US stocks being so overvalued and valuations being sky high about alternative stock markets. I was reading various articles that the Turkish Stock Exchange was significantly undervalued. Obviously the normal due diligence on stocks would need to be done such as analysing Annual Reports, Management, Industry Economics for instance. I kindly wondered please has anyone invested in any alternative stock exchanges from the main ones such as UK, US, AU, Hong Kong etc and experienced any good results please? If anyone could kindly get back to me on this i would be forever grateful and thankful for your support with this.

Sending you lots of good wishes and i truly wish for the very best for you and hope you achieve massive success with your investing. Take care.

[Pendrainllwyn]

According to Google, The Turkish BIST 100 Index is up 745% in the past 5 years and has quadrupled since the beginning of 2022. Are you sure its undervalued or are you at risk of jumping on the bandwagon? The S&P 500 is up 54% over the same 5 year period.

Currency risk may eat into your profits. In the last 5 years the Turkish Lira has depreciated about 75% versus the US Dollar so your Turkish Stock investment will have had to go up 400% to match a US stock that has flatlined over the same period.

The US has some of the greatest and most innovative companies in the world operating within an enormous business friendly market. I don't know much about Turkey but I doubt you will find the same on the Turkish market.

Personally I would invest in Turkey through an emerging market index fund but I wouldn't invest in a Turkey country specific fund or invest in any individual stocks unless I was extremely wealthy and had some genuine knowledge of the country. I wonder how many Turkish companies issue financial reports and regulatory disclosures in English.

Pendrainllwyn

[csearle]

Forgive me if I'm wrong but my impression is that the country is effectively run by an autocrat, who would stop at nothing to remain in power. The fate of companies there, and indeed the whole market, would I fear be ignored if said autocrat deemed it necessary to fulfill his aims. C.