Is Turkey a good investment?

The May-June sell off hurt all stockmarkets, but Turkey was hit particularly hard. Does this emerging market represent a cheap long-term opportunity or is it just too great a risk?

The May-June sell off mowed down all stock markets like a drunken professional boxer letting loose the latent power in his right hand in a bar full of non-fighters. It seems no matter where you looked, investors were nursing their cracked jaws and busted noses. Hong Kong. Japan. Brazil. There were more.

One of those particularly hard hit was Turkey, down about 45% in dollar terms in the space of about two months. The Wall Street-types will call it a correction. That is what I call a bloody route. As is my inclination, I am attracted to the aftermath of such calamities. I don't always invest in trouble (ie, we've avoided newspaper stocks and auto parts suppliers, to name just two). But I often find it worthwhile to take a look and see if such indiscriminate smashing left some cold, unbroken bottles of beer still in the fridge.

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