What a whirlwind of a week. If U.S. President Donald Trump's first week in office is any indication of what the next four years are going to be like, many such weeks will follow. The "Muslim ban" took effect across the United States only to be stayed hours later by U.S. Federal Courts, temporarily quelling the constitutional crisis the United States currently finds itself in. Investors flocked to Turkish equities and debt despite a ratings downgrade, while the Turkish lira gained strength against the greenback.

Approximately 65 percent of Turkey's publicly traded equities are owned by foreign investors according to the Central Registry Agency. Turkey appears to be attracting more foreign investors as this key metric is at record highs following the coup-attempt of July 15. The benchmark BIST100 equity index was up over 2 percent late Monday as investors spotted the silver lining in a Fitch downgrade that brings Turkey's rating to the highest non-investment grade rating. Fitch reaffirmed Turkey's outlook of "stable" perhaps surprising investors who were expecting a two-notch downgrade or a "negative" outlook from the ratings agency. On Monday, debt markets also applauded Fitch's expected announcement, delivered after markets closed late Friday, by rallying, bringing yields lower. Monday's rally pushes Turkey's equity markets past their July 15 highs, completing a six-month turnaround following the attempted coup.

The Turkish lira also rallied against the dollar, up nearly 2 percent on the day late Monday. Turkish credit-default swaps (CDSs), also rallied Monday, bringing the cost of insuring Turkish corporate debt to 2.65 percent. This cost of insurance against political and economic risk is actually far less than the cost of insuring the Portugal's eurozone debt. The Portuguese ECB-backed economy will set investors back 2.79 percent as of late Monday as the country deals with an impending bank crisis. Should the banking sector continue to deal with non-performing-loan surges, look for the ECB to step in and bailout Portugal. Despite the high cost of insuring Portuguese debt, it is still rated as "investment grade" by a Canada-based ratings agency, DBRS. Should that ratings agency also downgrade Portugal, it will no longer benefit from ECB bond-buying, in which case insuring Portuguese CDSs will become much costlier and their financial markets will undoubtedly take a major hit.

So why are investors returning to Turkish markets? The strong fundamentals of the Turkish economy coupled with a global economic crisis leaves investors hungry for positive returns, returns that are practically non-existent in Europe and Asia these days. Turkey's price to earnings ratios make Turkey undervalued giving investors an opportunity to snap up Turkish companies cheaply. Many Turkish companies listed on the BIST exchange are exposed to euro and dollar receivables decreasing their cost structures and increasing their profitability. These low prices, however, will most probably not last as U.S. uncertainty and threats to global free-trade will signal an end to the Trump Dollar.

While Turkey will benefit from the end of the strong dollar surge following President Trump's election, Trump may mean good things for Turkey on another front. On Sunday, Trump spoke with leaders of Saudi Arabia and the UAE, both of which are interested in joining Turkey and the United States in the implementation of a "safe zone" in Syria. The formation of this type of zone will probably be accompanied by a no-fly zone and allow Syrian refugees to return to their country and begin the long process of rebuilding their war-torn homeland. Turkey currently proudly hosts over 3.5 million Syrian refugees making it the largest home to refugees in the world. With the suspension of a previously agreed-to EU refugee assistance program, Turkey sponsors the refugees nearly unilaterally.

Trump's campaign promise to keep "Muslims" out of the United States was largely dismissed as campaign rhetoric, however, it appears he was serious. Signing an executive order, Trump effectively cancelled the visas of thousands of citizens of those countries and also de facto cancelled the citizenship rights of many dual nationals from European countries. This includes dual nationals of such countries as the United Kingdom and Israel should they have been born in any of these seven countries or carry citizenship from said countries. While protests continue against Trump's order, it is far too early to tell how the courts will ultimately decide. Any un-democratic decision will surely reflect badly on foreign investment in the U.S. and the dollar.