Considering what Fed’s reduction, uncertainty and tension that recent investigations and the upcoming election period which is highly problematical has brought, it wouldn’t be wrong to say that this year will be a difficult one for Turkey. Fed announced withdrawal from the money market “scene.” Five years have passed since the last global financial crises which started with Lehman Brother’s bankruptcy. A generation, who used to feeling collaborating Central Banks support on reconstruction of global economy, has started working actively in the field already. There is no guarantee for a bright future for some economies if they can’t manage to stand on their own feet without the support of central banks. All types of ‘tools’ were used in infancy period. If it goes down on it’s knees again, it is unclear what will help it stand up. Above all, if the” trust” is broken, it will be more difficult. Can Bank of Japan (BoJ) fill the gap created by the Fed’s reduction? This will be the new question of the new year. Yen will stand as the” carry trade “ (the cheapest funding currency ) again. Maybe it can meet the needs of the Asia- Pacific region, but it seems difficult to meet the needs of the rest. While the position of Germany is being determining on the EU this year, Another issue that will outstand and effect international politics will be the tension between China and Japan! This issue that began coming to the boil and started affecting the trade between the two countries in 2013, might as well shake the Far East and create negative impact on international trade and global financial markets in 2014. Iran’s return in international trade and politics arena will gain momentum this year which would both concern Turkey and global economy. This might bring us significant advantages in terms of trade, on the other hand may cause a decline in Turkey’s importance in the region. CHINA’S GROWTH WILL SLOW DOWN THIS YEAR Going back to Turkey; Fed’s reduction will also cause a gripe for Turkey. Above all, due to facts such as “corruption investigations “ started in the middle of December and upcoming local elections - President will be elected by the public votes for the first time which would probably lead to generals elections -, interest of foreign investors will be reduced. Considering all, it wouldn’t be wrong to say that this year will be difficult one for Turkey. This year Turkey will also be having a “peace process” which might affect elections. Every positive step to be taken in this regard will be reflected in both domestic peace and growth. However, mistakes will have the opposite effect, even will reduce the possibility of peace can be built between in the coming years. Central Bank’s multi-targeted rating policies may cause new problems this year. We may see the uncertainty increasing in Turkish markets in the period between the end of January and the end of May. We may see TL regaining value in the second half of the year, only if we complete May without any “accident”. A difficult and intense year is waiting for us! Good leadership and governance can create very serious differences this year!