This Could Be The Best Place In The World To Invest Right Now

Let’s test your geographic, political, economic and investment IQs. 

This is the 17th largest economy in the world with a GDP of $1.3 trillion that has grown 5% per year since 2002.  

The country is located at the hub of three continents with a combined population of 1.5 billion people to trade with.  And it’s bordered by 56 countries — which contributed to its exports hitting an all-time high of $152 billion in 2012, according to the country’s minister of economy.

This driving economy is drawing the likes of General Electric (NYSE: GE), Siemens (NYSE: SI), Ford (NYSE: F) and Vodafone Group (Nasdaq: VOD).  These companies are investing billions in this country’s future.  And that’s in addition to $120 billion of foreign direct investments (FDI) that the country has attracted over the past decade. 

The country is Turkey, and it could be the best place in the world to invest for the long term.

Considered an emerging and diverse economy similar to the BRIC nations (Brazil, Russia, India and China), Turkey reeks of opportunity in energy, renewable energy, food, automotive, petrochemicals, iron and steel, real estate and finance.

For example, Turkey is a gateway between Europe, Central Asia, the Middle East and North Africa.  As such, it is a stop along the way for oil and gas supplies as they move from Russia, to the Caspian region and on to the Middle East to get to Europe.

The country’s food, agriculture and animal husbandry minister predicts that food export volume will reach $40 billion by 2023, putting Turkey squarely among the top 10 countries for food exports. 

The purest investment in Turkey, other than banking on the Turkish lira, is the iShares MSCI Turkey Investment Market Index ETF (TUR). 

Last year, this ETF gained nearly 66% as vibrant industry and economic reforms in Turkey made it a favorite among investors.

And the ETF rose close to 50% in early 2013 before hitting the skids in May, shedding 40% of those gains.  I think the pullback opens up a tremendous long-term investment opportunity.

A word of caution, though.  Like many countries fighting for their own identities and respect from the world, unrest among Turkey’s people escalated this summer. It happened to coincide with the Fed‘s threat to taper stimulus in the U.S.  The one-two punch sent shares of TUR tumbling. 

Despite Turkey’s sensitivity to markets abroad, Fitch and Moody granted this country investment grade for its ability to cope with tensions over the past decade. Investors, in turn, made it the darling of emerging markets in 2012 and early 2013.

In the long run, we’re witnessing the ongoing maturity of an economic force to be reckoned with.  Sure, Turkey may stumble along the way, but the “one step back, two steps forward” adage can apply to most ambitious countries.

Action to Take –> I think TUR is a buy at its current $55 price as a long-term holding. The price will ebb and flow, but I’d bet on Turkey to be one of the next economic powerhouses and a boon for early investors.  You might even consider buying GE, Ford, Vodofone or Siemens depending on the stake each has in Turkey.

– Karen Canella

P.S. – Many of the companies that are making the biggest gains for investors are expanding outside of their native lands.  We feature some of them in our sister company, StreetAuthority’s, latest research report, “The Top 10 Stocks For 2014.” These 10 stocks have nearly tripled the market’s return, delivering an average 129.5% gain over the past five years. To learn more about this unique set of stocks — including names and ticker symbols — click here.

This article originally appeared on InvestingAnswers
Author: Karen Canella
This Could Be The Best Place In The World To Invest Right Now