Hurricane hits the Balkans
Having risen sharply over the past few years, southeast Europe's markets are now doing exactly the opposite. And with the region both high-risk and expensive, the slide won't end soon.
Investors in southeast Europe are facing a "hurricane", as FAZ.net puts it. Having risen sharply over the past few years, the region's markets are now doing exactly the opposite: Romania's BET index has lost 32% from last year's peak, Bulgaria's BG 40 around 40%, and Serbia's Belex more than 50%; Turkey is down by around 30%.
The prospect of years of fast growth as these economies converge with the EU underpinned the bull runs, but this long-term factor is now on the back burner. Political upheaval in the Balkans has soured the mood of late, but, more importantly, now that fear has eclipsed greed in global markets, investors have been concentrating on these countries' economic weaknesses.
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