Don’t be hasty in diversifying your portfolio…

As both the G-20 Summit and inflation rates helped ease markets a little bit, economy has been giving confusing signs lately. However, economic, politic as well as diplomatic could still turn the tide.

Not to make you upset but it’s still too early to consider the slight amelioration in some parameters “improvement”. We all know that making money is hard. That’s why you should avoid hasty actions to keep your savings.

There economic and politics risks ahead. Inflation rates turned out to be exactly as expected, increasing the possibility of a rate cut. As I’ve mentioned many times in my morning reports and my social media posts, September Inflation will help eliminate the last year’s negative base effect. So, it’s very difficult to predict that the upward trend will continue.

This positive trend, however, faces some risks. Turkey will not have too much of a problem if the US Government doesn’t release any negative statements before the CBRT’s interest rate announcement in July 25. But, major developments may potentially arise anytime in domestic politics.

“From UK to the US, the world is running some serious risks…”

With an announcement in the week beginning July 22, conservative members will cast their ballots on who will be the next prime minister: Boris Johnson or Jeremy Hunt? According to political analysts, the world will face another disaster after Trump if Boris Johnson emerges as victor.

By the way, it still remains unclear that exactly when the S-400 missile defence system will be deployed in Turkey. The US House of Representatives and the Senate continue to use a sharp tone of voice against Turkey. I even heard a statement by the Chair of the United States House Committee on Foreign Affairs, declaring that this is not a joke; the US will impose some serious sanctions if those missiles are delivered to Turkey. So, it looks like problems have not yet been solved completely despite the positive messages at the G-20 Summit.

The Fed will hold a meeting on the last day of July, while in the meantime; Turkish pilots training in the United States must leave by July 31. So, we should expect Turkish Monetary and Capital Markets to be little a more volatile than normal.

A possible US attack on Iran might be the only thing that can dissuade the US from siding against Turkey completely. An Iranian parliamentarian said that Israel will be destroyed in half an hour if the United States attacks Iran. It’s for the US to decide whether this is a threat or nothing but a bluff. We have a very stormy July ahead of us.

Don’t be hasty in diversifying your portfolio since it may be too late to put in order again.