Market turbulence can easily cause you to pause or prompt second thoughts.
Volatility is never comfortable, especially when it is linked to unsettling headlines such as the conflict in Iran. It is natural to feel tempted to wait on the sidelines until markets seem calmer again. But history suggests that uncertainty is not always a reason to delay.
With the ISA deadline fast approaching, now could be a useful moment to revisit a few enduring lessons.
1: Short-term shocks do not usually define long-term returns
Geopolitical events can cause sharp market moves, but they rarely determine long-term investment outcomes on their own.
Over the years, investors have had to contend with wars, recessions, commodity spikes and political crises, yet markets have repeatedly recovered as attention returned to earnings, valuations and long-term growth. Templeton Emerging Markets Investment Trust (TEMIT), launched in 1989, has invested through many such episodes. The path has not always been smooth, but the long-term direction of travel has been one of growth as the chart below shows.
Emerging markets: the long-term context of market ups and downs
Value of £20,000 invested
Past performance is not an indicator of future performance.
Source: Morningstar, TEMIT since inception 12/06/1989 to 31/03/2025. TEMIT share price total return calculated using Closing Prices, with distributions reinvested on ex-date. Performance details provided are in Sterling and include the reinvested dividends gross of basic rate of UK tax. Sales charges and other commissions, taxes and relevant costs paid by the investor are not included in the calculations. The Fund's returns may increase or decrease as a result of changes to foreign currency exchange rates. Benchmarks are used for comparative purposes only; one cannot invest directly in a benchmark and performance of the benchmark does not reflect any fees, expenses or sales charges.
2: Emerging markets still offer long-term growth potential
For many investors, emerging markets remain an important source of dynamism and long-term opportunity. They offer exposure to economies generating 65% of global GDP growth (1), as well as to structural growth trends that can be harder to find elsewhere, including rising incomes, urbanisation, innovation and expanding consumer demand.
Just as importantly, many investors remain underexposed to emerging markets relative to their long-term potential. The so-called “Sell America” trade is a reminder that some investors are increasingly questioning whether portfolios have become too concentrated in the US.
We believe 2025 marked the beginning of a multi-year bull run for emerging markets, which are home to innovative businesses competing successfully worldwide in industries such as advanced semiconductors, memory chips, electric vehicles, and renewable energy, many of which are held in TEMIT’s portfolio.
In that context, periods of volatility can be an opportunity for you to build or increase allocations gradually, rather than a reason to retreat.
3: Waiting for calm can carry a cost too
Some of the best opportunities to invest rarely feel comfortable at the time. If you are wary about committing a lump sum, drip-feeding money into markets can be a sensible way to smooth volatility and begin building the exposure you want.
Time in the market has often mattered more than timing the market.
How to Invest with Us
Shares in TEMIT qualify as an investment which can be held through an ISA. TEMIT is available through a stocks and shares ISA from a number of different companies. As individuals’ financial circumstances will differ, we recommend you talk with a qualified financial adviser regarding the options available to you before making investment decisions.