Source: Bloomberg

Emerging market ETF’s outperformed again today, lead by Korea (+1.7%), and trailed by Turkey (-1.0%). Apart from China, these are the two cheapest markets, with forward P/E’s under 10. Both underwent political crises last year (coup attempt in Turkey, impeachment of South Korea’s president).

The difference is that Turkey remains a political minefield, has double-digit inflation, and a set of highly kinetic problems on its border, while South Korea is booming, and just elected a new government that wants to patch problems up with its neighbors. We’re cautious on Turkey and aggressive buyers of Korea.