From the Fleet Street Letter (GBR) – Stock markets are responding well to the recently announced stimulus package from the European Central Bank. In addition, the Chinese growth plan has averted fears of devaluation. This combination of events is likely to support global stock markets over the coming months.
The recent purchase of another less-known country’s equities in the Whisky portfolio was closely linked to the fall in the currency, the continued earnings growth and the upturn in the market, while avoiding unwelcome volatility. The stock market in Turkey shows similar characteristics.
The Turkish lira has fallen by nearly 50% against the dollar since 2011 (the dollar has doubled). There is a good chance that the worst is behind it.