Tremors in Turkey, but where on the Richter scale?
Markets staged a mild rebound in July, but the respite was brief as Turkey's longstanding structural issues erupted into a financial crisis a month later. The question for investors now: where should Turkey’s tremors rank on the Richter scale, and what do we make of the aftershocks in global markets?
We believe the biggest impact of the Turkey crisis is on investor sentiment, which suggests that the selling so far has been indiscriminate as well as overdone. For one, the knock-on impact on Asian markets, whose fundamentals remain robust, could present a buying opportunity.
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