National Bank of Greece (ADR) (NBG), Turkcell Iletisim Hizmetleri A.S. (ADR) (TKC): It May Be Time to Invest in Turkey

Of course, the Turkish economy is not risk-free. Even though it is relatively stable, it still won’t be as stable as the American or German economies. Furthermore, even though Turkish economy has outperformed the European Union in the last few years, the growth in the country might be slowing down. In the last few years, Turkish economy depended heavily on loans, privatization and foreign investments. In particular, a lot of wealthy investors from countries like Kuwait and Saudi Arabia invested large amounts of money in Turkey because the economical and political conditions are more stable in Turkey than most Middle Eastern countries.

In the near term, Turkish stocks may continue to fall. Once the stability returns to the country, the stock prices should start to recover. At the moment, Turkish stocks may not be as safe bet as American stocks but they surely are much safer than stocks in countries like Spain, Italy and Greece.

Source: Der Spiegel, via istanbul notes

Conclusion

After going through what Greece was currently going through in 2001, Turkey implemented many changes in its banking system in order to build one of the healthiest economies in Europe. This also gives me hopes about the Greek economy. Investors sold Turkish stocks out of fear and the country’s stock market is currently in the oversold territory. Those looking for stable growth with relatively low risk can find a great entry point to the Turkish stocks at the moment.

Jacob Steinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Jacob is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article It May Be Time to Invest in Turkey originally appeared on Fool.com and is written by Jacob Steinberg.

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