EM PM, Ecstrat

Emad Mostaque

EM PM

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Thematic (Sector/Industry)

<div>“Erdogan once said that democracy, for him, is a bus ride … 'once I get to my stop, I’m getting off’ ” <em>- Jordan's King Abdullah recalling a conversation with the Turkish President</em></div><div> </div><div>Tonight is Hıdrellez in Turkey, celebrating spring and the day on which the Prophets al-Khidr and Elijah. Traditionally wishes come true today and it would seem that President Erdoğan's wish for an executive Presidency has come one step closer to reality with the resignation of Prime Minister Davutoğlu.</div>

“Erdogan once said that democracy, for him, is a bus ride … 'once I get to my stop, I’m getting off’ ” - Jordan's King Abdullah recalling a conversation with the Turkish President Tonight is Hıdrellez in Turkey, celebrating spring and the day on which the Prophets al-Khidr and Elijah. Traditionally wishes come true today and it would seem that President Erdoğan's wish for an executive Presidency has come one step closer to reality with the resignation of Prime Minister Davutoğlu.

Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

Macroeconomics

<p>Dollarization does not appear to be an 'active' decision by market participants. &nbsp;Unfortunately it is starting to cause issues for the banking sector, leading to rapid growth in off balance sheet derivative positions. &nbsp;Some banks are managing the gap, others seem to be struggling.</p><p>We also consider the factors contributing to the weakness of the Lira, the central bank is culpable.</p>

Dollarization does not appear to be an 'active' decision by market participants. &nbsp;Unfortunately it is starting to cause issues for the banking sector, leading to rapid growth in off balance sheet derivative positions. &nbsp;Some banks are managing the gap, others seem to be struggling.We also consider the factors contributing to the weakness of the Lira, the central bank is culpable.

TURKEY:  The 'accidental' Dollarization and what is 'off' bank's balance sheets

Turkey

iShares MSCI Turkey ETF is an exchange-traded fund incorporated in the USA. The ETF seeks investment results that correspond to the performance of the MSCI Turkey Investable Market Index.

iShares MSCI Turkey (TUR US)

Erdoğan Gets His Wish

“Erdogan once said that democracy, for him, is a bus ride … 'once I get to my stop, I’m getting off’ ” - Jordan's King Abdullah recalling a...

Emad Mostaque

TURKEY: The 'accidental' Dollarization and what is 'off' bank's balance sheets

Dollarization does not appear to be an 'active' decision by market participants. Unfortunately it is starting to cause issues for the banking...

Mark Artherton