Turkey Currency Crisis: Where Goldman Sachs Sees Opportunity in Emerging Markets

Wall Street is fixated on the currency crisis unfolding in Turkey. But, they should be focusing on opportunities in emerging markets after their recent slide, says one top Goldman Sachs strategist.
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Can't blame investors for not thinking emerging markets aren't yet an attractive opportunity.

Turkey's political and economic crisis sent its currency tumbling to a record low against the U.S. dollar on Friday. The move, which has been unfolding since earlier in the week, has unsettled investors amid fears that the contagion may spread from Turkey into financial markets around the world.

The country's crisis put more pressure on emerging market stocks, which were already dealing with a terrible 2018 amid rising interest rates and trade war fears. The iShares MSCI Emerging Markets ETF (EEM) - Get Report is now down 10% on the year. 

Despite the influx of bad headline news (or because of it), investors may be overlooking investment opportunities in emerging markets.

"If you are worried about trade impacts on emerging markets, look to the domestic stories like India where a lot of the growth opportunities are in Indian companies serving the Indian marketplace," CEO of International Goldman Sachs Asset Management Sheila Patel tells TheStreet. "We still see some opportunities in China, it's about the Chinese consumer and the opportunity to serve them."

Patel adds, "It's a stock-picking, selective strategy."

Why Jim Cramer is bullish on Goldman Sachs (GS) - Get Report .

Watch what Patel told TheStreet about the markets more broadly