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)

<p class="graf--p">In an our update yesterday we noted that the Western reaction to the attempted putsch in Turkey has been rather hostile, from US Secretary of State John Kerry saying Turkey’s NATO status would be under threat if President Erdoğan cracked down to widespread speculation that this may have been a “Reichstag fire” moment organised by the government to cement its control, a position I fundamentally disagree with.</p><p class="graf--p">This piece looks more closely at how difficult a situation the Turkish government is facing and why it may, on this occasion, be best to err on the side of caution as long as they stay within the law.</p>

In an our update yesterday we noted that the Western reaction to the attempted putsch in Turkey has been rather hostile, from US Secretary of State John Kerry saying Turkey’s NATO status would be under threat if President Erdoğan cracked down to widespread speculation that this may have been a “Reichstag fire” moment organised by the government to cement its control, a position I fundamentally disagree with.This piece looks more closely at how difficult a situation the Turkish government is facing and why it may, on this occasion, be best to err on the side of caution as long as they stay within the law.

Putting Turkey's Purge in Perspective