– Turkish Stocks Collapse Most In 10 Years, Bond Yields Surge Most On Record (ZeroHedge, June 3, 2013):
UPDATE: BIST-100 Closes -10.47% – Biggest drop since March 2003
Until mid-last week, the Turkish equity market was up 90% from the start of 2012 and up 19.5% in 2013. Of course, why not. Global easy money and a nation in the middle of economic and geopolitical hotspots – buy it with both hands and feet. However, it appears reality is starting to sink in. Last week’s (and ongoing) social unrest is beginning to take the shine off the hot-money flows. The broad Turkish stock market is now down 17% from its highs last week (very reminiscent of Japan) having given up in 3 days the gains from the first five months of the year. Turkish bond yields also spiked (moar hot-money outflows from ‘reaching for yield’) by their most on record (71bps) to 6.78%.
Turkish Stocks…
Turkish Bonds…
Charts: Bloomberg
Sounds like the Turkish market is more attuned to the real economy than the US stock market. Our market is so rigged, nobody believes it. Volume is down dramatically since 2007, and it isn’t going to get better any time soon.