"Emerging markets: the best and the worst of 2008
Despite 2008 fall, emerging markets still seen outperforming in coming years
Turkey: In Turkey, which was once the classic carry-trade country, equities have fallen 66%. Investor sentiment has been hurt by Turkey's large current account deficit, slowing economic growth, high inflationary pressures and political turmoil. The political situation stabilized after the ruling Justice and Development Party, which has Islamist roots, escaped an attempt to ban it by critics who accused it of undermining secular values. Turkey has been in talks with the International Monetary Fund about getting a new loan to help it weather the financial crisis. The performance of the Turkish market is "absolutely dependent on this IMF package," Conway said. "If the package goes through, you're going to see a very sizable bounce in the Turkish market." He cautioned, however, that it will probably be a bear market rally."
More:The bad, the worse and the ugliest, in 2008 - MarketWatch
