Turkey Could Crumble

The Turkish economy is vulnerable. The country has a massive current account deficit that it has, until now, been financing with huge inflows of foreign capital. But that foreign capital might not be coming anymore. According to

, a Bank of America-Merrill Lynch poll showed that equity fund managers are underweight Turkish stocks to a degree that has not been seen in three years. The Turkish Central Bank reports that foreigners have pulled $325 million out of Turkish stocks in recent months. Turkey is an emerging market economy that has been trying to gain membership in the European Union for over two decades. Investors may be leery of Turkey given the risks of emerging markets and the problems facing the European Union. However, investors who believe that Turkey is oversold may have a great buying opportunity. iShares MSCI Turkey Investable Market Index Fund

may allow investors to get exposure to Turkey.