Turkey is heading towards chaos

Follow this link if this email is not displaying correctly DAILY BULLETIN Monday 28 November 2016 Turkey is heading towards chaos by Filipe R Costa | Economics | 5 mins. to read While the global euphoria ignited by Donald Trump persists, there are parts of the world where sentiment is a little weaker. Trump will certainly help central banks to adjust policy and boost the domestic economy, but it will bring a lot of trouble to emerging markets. When I say trouble, I'm not thinking about Trump's extreme convictions regarding globalisation and protectionism; I'm just referring to the natural consequences stemming from a fiscal boost and faster monetary policy stabilisation in the U.S. The first collateral damage was felt in Mexico. Turkey will be next… A few months ago, in my article Turkexit is now a reality, I wrote the following: "The CBT has been following an easing policy of cutting rates while inflation is above the 5% target. I really doubt the CBT will be able to maintain its trend of cutting rates without accelerating the depreciation of the lira. I believe that the current low yields observed elsewhere are helping Turkey to retain some of its attractions. But as soon as ratings agencies start cutting Turkey's rating, the EU-Turkey relationship deteriorates, and/or there is any sign the US may raise rates, the lira will stumble. Because of these considerations, I believe that there is a good fundamental reason to keep a long position in USD/TRY through spread betting to avoid the current sterling risk at a time when sterling is experiencing significant volatility." At the time, the lira was trading at 3.0289 per dollar.   Click here to read the full story LATEST STORIES FROM OUR BLOG Pan African Resources: Above the 200 day line targets 28p by Zak Mir | Trading | 1 mins. to read Although there is still over a month to go to get over the finishing line, looking at some of the best performing stocks of the year to date reveals a surprising name or two.   Click here to read the full story An introduction to Technical Analysis by David Jones | Trading | 5 mins. to read Too many people seem to have a blind faith approach when investing, and if a share continues to slide they hang on in the hope that one day it will rise.   Click here to read the full story British Land's appeal has been boosted by Brexit by Robert Stephens | Equities | 5 mins. to read In the days following the EU referendum, UK commercial property was the last thing investors wanted to hold. Various funds were suspended, commercial property stocks recorded vast share price falls and it seemed as though the sector was in for a rough ride.   Click here to read the full story Providence Resources: Triangle break targets 20p plus by Zak Mir | Trading | 1 mins. to read There is nothing as frustrating, but ultimately rewarding, as calling the end of an extended bear run in a small cap stock. Providence Resources (LON:PVR) is the situation where we may finally see a decent rally.   Click here to read the full story Modi's demonetisation sell-off is a buying opportunity by Ruzbeh Bacha | Economics | 5 mins. to read In keeping with the Indian Government's reform agenda, on 8 November Prime Minister Modi announced the immediate withdrawal of Rs. 500 & Rs. 1000 notes, in a move to reduce black money in the system, curb funding of illegal activities and address the problem of counterfeit notes.   Click here to read the full story QUOTE OF THE DAY "Study the past, if you would divine the future."                                                  Confucius MASTER INVESTOR VIDEO EXCLUSIVE LATEST EDITION OUT NOW Is your portfolio ready for a 2008-style financial crisis? Bank valuations already at lowest point since 2008 - a precursor to another blow-up. A real risk of Italy leaving the Euro, French insolvency, and Germany writing off huge loans to Southern Europe.  Disruptive political events, like Brexit or the US election, threaten to throw markets off course. Will China's debt bubble finally burst, just when no-one expected it? Click here to download as PDF   Click here to read in ISSUU format Master Investor Ltd. Suite 88, 22 Notting Hill Gate London, W11 3JE T: +44 7515 542707 E: swen@masterinvestor.co.uk Share the newsletter: Follow us: Copyright © 2016 Master Investor Ltd, All rights reserved. Master Investor is a trading name of Master Investor Ltd. Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such descision. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news. Want to change how you receive these emails? Why did I get this | Unsubscribe from this list | Update subscription preferences