Weed Out Your Turkish Stock Portfolio – Turkey ETF?

November 21, 2014
Turkey From A Glance regarding eft

Weed Out Your Turkish Stock Portfolio.

  1. How to weed - Through my years as an investor in stocks, including in Turkey, I have found that it is super important that when the overall market is rallying to take careful note of your portfolio. Look over every stock that does not go up on a big day and take a mental note. If this pattern continues on subsequent up days then lighten up on those stocks. For instance, if the market is rallying for several big up days and stocks in your portfolio are not rallying then you likely have a problem. Go through the stocks in your portfolio that are moving up and weed them out.


  1. Why weed? – Next time the market corrects you will likely see damage in those stock that failed to rally higher on big up days. This is a general investing concept you can use whether investing in a stock in the Turkish stocks or anywhere else. Typically stocks that can’t go higher in a big up day are telling you that there is information out there that you don’t know about yet. You may think you are more informed that other investors but typically the stock that can’t go higher has something wrong with it that you do not know about. Stocks stalling when the market is going up tend to get clobbered. This relates to an old concept of cutting your losses. This highlights some age old investing wisdom which is to cut your losses. Follow on Twitter cutyourlosses@cutyourlosses to emphasize the importance of all of this.


  1. Miracle Grow - The portfolio that is left over after weeding is typically high quality and acts like it has been fertilized. I have found that the weeded portfolio will tend to grow much faster without the weeds. The capital that was in the weeds can be redeployed into higher quality investments and those will likely perform better. This really reiterates a very important rule in investing which is to let your winners run.

P.S. Oh and one other tip: Alternatively, if you do not want to trade your stocks as an investor you can consider the Turkey etf. The ticker is “TUR”  which is high quality. I find it is low cost and a great altternative. I have done the research and have no affilaition with Ishares that created the TUR ETF. This etf should give you very solid exposure to the broad Turkish stock market.  Conveniently TUR trades in the U.S. markets. I have no affiliation with the etf but did the research and thought I should get the information out there for you! Happy investing :)

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