THE INVESTMENT SELECTOR

The crisis in Turkey and what it means for your portfolio Earlier this month, Turkey’s worsening economic woes were on the front pages of financial news, sending stock markets around the globe down. For the last few years, the Turkish government and corporations have borrowed heavily from foreigners. But this summer, investors grew particularly worried about the prospects for the Turkish economy and their investments in it. High growth has been accompanied by rising inflation

I previously described my systematic framework for choosing stocks in the financial sector, along with some additional analysis. The reason I looked into developing my strategy for selecting companies operating in financial industries, such as banking and insurance, is that I found that numerous quantitative or systematic studies and systems excluded those types of stocks. For instance, Joel Greenblatt’s “Magic Formula” is a well-publicized strategy that purposely excludes th