Formerly a darling of emerging market investors, Turkey has come under a lot of scrutiny in recent months, as the political and economic environments have deteriorated. Turkey’s stock market has underperformed emerging markets by 12.4 per cent this year, and valuations for the market are cheap on both an absolute basis, with single-digit P/E ratios, and a relative basis, where the P/E is at a substantial 25 per cent discount to EM.

Despite this, there are several reasons why now is not a good time to buy Turkish equities. Read more