Marc Faber and Jim Rogers expect a bear market for Turkey

-Original article appeared on 8/27/2013 on WSJ in Turkish

Two of the celebrated and famous investors are expecting a bear market for Turkey. Marc Faber and Jim Rogers are also foreseeing a short term sell off in emerging markets.

One of the most prominent commodity investors in the history who also foresaw the China led rise in emerging markets, Jim Rogers was pretty on the down side for the Turkey.

“We are all going to suffer. Countries with trade deficits will be very suspect since the markets will worry about how they are going to finance the deficits” told Rogers to Wall Street Journal in an interview done over the email.

According to Turkish Statistical Institute Turkey’s trade deficit has exploded to 24 billion USD in last 10 years, increasing 5.5 fold.

The infamous Marc Faber who is also known as Dr.Doom as the publisher of “Gloom, Boom and Doom” report, was also very bearish:

“I am very bearish because it has experienced a colossal property bubble” said Faber to The Wall Street Journal.

As the booming housing market is visible as new skyscrapers reshapes the Istanbul’s skyline, house prices has increased 42 percent according to the Central Bank of Turkey. According to Reidin, an emerging markets real estate research firm, housing prices has gained 50 percent since 2009 dip and more than doubled since 2001.

Both investment gurus thing there will be an outflow from emerging markets which might not last long.

“Emerging markets may begin to outperform the US, which is now rather vulnerable” says Mr. Faber who also adds, “(Jitters) Has little to do with tapering but liquidity is tightening and there was over consumption (trade and current account deficits) in emerging markets.”

Jim Rogers also warns about the rocky markets in couple of years:

“There are going to be market problems in many markets in the next couple of years.”