Sitting here in Istanbul, this side of the Middle East is definitely a much better place.
The Turkish market has already delivered a solid bounce after traders fled the region back in early March, and now the Turkish ETF (NYSE:TUR) seems to have built a comfortable base around $59 to $60 a share:
However, while the latest round of protests in Egypt look peaceful, the gathering crowds have analysts warning that this market will remain under pressure for the immediate future.
Essam Sharaf, the country’s new prime minister, is making concessions to the populace, but it remains to be seen whether real reform — and a trial for former dictator Hosni Mubarak — will unfold at a pace that keeps the crowd happy.
Nonetheless, the tourists seem to be coming back, and while the Egyptian ETF (NYSE:EGPT) has dipped 6% in the last three weeks, it is still well above its post-revolution lows:
A little secret about both Egypt and Turkey: neither has appreciable oil, so they trade better when oil prices are in decline.
That is the exact opposite of what many in the market naively believe, and is a macro factor to keep in mind whenever you look at either country.
Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.
About Tim Seymour: Tim is a founder of Emerging Money. He is a founder and Managing Partner at Seygem Asset Management, and The Emerging Markets Contributor to CNBC. Seygem Asset Management focuses on investing throughout the global emerging markets asset class. With a view that emerging and developing economies will continue to outpace the economic growth and advancement of developed economies, Seymour has devoted a career to investing in the dominant markets of tomorrow, today. Seymour’s career has included significant experience in both alternative asset management (hedge funds) and capital markets, having launched two hedge funds, and built the largest Russian broker dealer in the USA. Seymour started his career at UBS, focusing on international credit (cash, swaps, forex) in a specialized hedge fund group (New York). Seymour completed the firm’s training program after graduating with an MBA in international finance from Fordham University. Seymour received his undergraduate degree at Georgetown University.