Missing the positive global atmosphere again

Following the U.S. Central Bank's (Fed) postponement of rate hikes, the European Central Bank decided to continue its monetary expansion, creating a beneficial environment for developing countries such as Turkey. The expectation of the abundance of global liquidity has particularly revived bond investments in countries such as Turkey.  

The main reason there was not too much of a disruption in the markets despite the recent terror disaster in Ankara was this positive global atmosphere. Because hot money has started flowing again, the positive course in the securities and bond market was maintained.

The markets, on one hand, want to make use of this atmosphere but on the other hand they are aware that this climate is temporary. For this reason, as long as there is an opportunity for profits, they want to make the best use of it. 

It is certain that this atmosphere is temporary. No changes in rates are expected in the Fed's decision scheduled for March 16. On the other hand, the expectation concerning the meeting in June is predominantly a new rate hike. Markets predict the Fed will increase rates 0.50 points in total this year, and this will be done in June and September. 

This shows that the positive atmosphere nurtured by the Fed, which is the real dynamo of the abundance of global liquidity, will only continue for a couple of months.

Also, the European Central Bank's last rate and bond purchase decision was more positive than expected in the markets. For this reason, and also due to negative rates and the abundance of cash in Europe, there was a capital inflow to countries like Turkey. However, it is immediately being said that this will not continue for long. We see comments are increasing that these decisions will not...