Markets: Turkey and MSCI EM Spread Analysis

In Turkey, as we postulated last week, we are bullish primarily because valuations are extremely attractive in our coverage universe; 12-month forward valuations show Price-to-Book at 1.33x and Price-to-Earnings at 10.59x.

1 year spread analysis shows us that with respect to MSCI Emerging Markets Index, it is currently 2 standard deviations below the mean before the mean reversion kicked in post elections.

turkey and msci em

Source: Bloomberg

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