INVESTING is a roller coaster – one minute you could be riding high as your investments soar, while the next could see your money nosedive if a major shock strikes markets.
There have been dips in recent weeks as the war in the Middle East sparks market jitters. You might think this is a terrible time to invest… but it’s actually one of the best if you play your cards right, according to experts.
Since the start of the conflict, markets have tumbled.
Over one month the FTSE 100 – the 100 biggest companies in the UK – has dropped 5.6%
While the S&P500 – the 500 biggest companies in the US stock – has fallen 5.1%.
Buying in a dip like this could see you snag a bargain, as the cost of buying a share (which means you own a slice of a company) becomes cheaper.
This is a bit like going shopping in the sales – you buy a cheap deal, and then hope to benefit if the stock market recovers.
But with so many options out there, which one should you pick in a dip?
The first step is not to assume a company is a bargain just because its share price has dropped.
There are loads of factors to consider – like how the business might grow in the future, whether its profits will increase, and how it will fare against the competition.
And it’s not just companies you can invest in. A great choice for a beginner investor is a fund – which is like a shopping basket of different investments. It’s considered less risky, as your eggs aren’t in one basket, and a professional chooses which ones to back.
Again, you shouldn’t just invest in a fund because its price has gone down. You should also look at its strategy and whether the manager in charge will pick the best investments.
Luckily, we’ve asked top investment experts to do the legwork for you.
We’ve asked four pros to share which investments they would consider buying now.
Not all of these funds and shares have performed well over the last year or so – and some have even lost money in the short-term – but our experts think they are well-placed to thrive in the future.
‘Hedge your bets on developing countries and the UK’
- Jason Hollands, managing director, BestInvest
Templeton Emerging Markets Investment Trust
This fund invests in companies based in developing economies such as China, India, South Korea and Latin America.
These are fast-growing nations with a younger and increasingly wealthy population, which means the companies based there have the opportunity to grow quickly too.
Emerging Asian countries tend to rely heavily on energy imports from the Gulf, which means they have been hit in the latest conflict.
But Jason Hollands, managing director of BestInvest, thinks that makes it a good opportunity to invest.
“Templeton Emerging Markets has a strong track record of bouncing back after periods of turmoil,” he says.
While each stock market dip is different, it can help to see how investments have performed since previous crises to assess whether it is worth investing during the current one.
The most recent of these was Liberation Day in April 2025, when stock markets plunged after US President Donald Trump announced his trade tariff plans.
Since then, this fund has climbed 69%, turning £100 into £169.
The outbreak of the Covid pandemic sparked huge turmoil on global stock markets, but they soon started to recover.
Since the start of that crisis, this fund is up 134%, which would have turned £100 into £234.
Temple Bar Investment Trust
This fund invests mostly in UK companies, focusing on firms that are currently out of favour.
But this is what makes it a good investment opportunity… and Jason thinks it could bounce back in the future.
About 11% of the fund is invested in energy companies. Energy is one of the few sectors which is benefiting from the current Middle East crisis. That’s because the oil price has soared because there are concerns about the supply after the Strait of Hormuz was blocked.
This fund made a smart move, because it invested in these companies when other investors didn’t like them and the share prices were low. As these companies bounce back, it can then make an even bigger return on your money.
As well as BP and Shell, it invests in the likes of HSBC, ITV and Aviva. The fund is up 218% since the Covid crisis – a £100 investment then would have grown to £318.
It has risen 42% since Liberation Day – a £100 investment then would be worth £142.
What are the risks?
BEFORE you start investing, you need to understand the risks.
The return you make will depend on how much you invest and where.
As we have seen recently, the stock market can dramatically fall.
The US stock market recently saw its biggest drop since the start of the Covid pandemic after President Donald Trump announced plans to introduce punitive tariffs on goods imported from other countries.
The UK’s own stock market, the FTSE 100, fell by more than 10 per cent after the news.
You must be prepared to lose it all – so only invest money you can afford to sacrifice.
You need to be willing to invest cash for at least five years to mitigate any dips and allow your money to recover. If you can’t afford to lock up your money for this long, investing may not be right for you.
It’s usually better to drip feed money into your investments instead of putting down a big chunk of money in one go.
Before you start investing, experts say you should have a minimum of six months’ of wages in a savings account before you start and only invest money you can afford to lose.
Why energy and mining companies could be a great bet
- Ben Kumar, head of strategy, 7IM
BHP Group
BHP is the world’s largest copper miner, and also deals with other metals such as iron, coal and nickel.
It operates across countries including Australia, Chile, Canada and the US.
It could be a great time to invest in this company, Ben thinks, because the war has shown how reliant many countries are on basic imports like these.
“The company is a natural partner for Western nations looking to increase resource security,” says Ben Kumar, head of strategy at the wealth manager 7IM.
BHP shares are up 155% since the Covid pandemic, and a £100 investment then would have grown to £255. Since Liberation Day, shares have climbed 31%; a £100 investment would have grown to £131.
Iberdrola
Spanish utilities firm Iberdrola is focused on non-fossil fuel energy supply, like wind, solar, hydro and nuclear power.
Ben believes this company has the legs to be a huge success in the future, as it could help companies move away from relying on imported fossil fuels.
“If Europe wants to move away from relying on the Middle East and Russia, then Iberdrola is probably the go-to expert.”
Shares in the firm have soared 154% since Covid, turning a £100 investment into £254. Since Liberation Day, shares are up 30%, turning a £100 investment into £130.
The safest bet could be your best bet
- Annabel Brodie-Smith, communications director, Association of Investment Companies
Capital Gearing Trust
This fund is a “sensible option” for investors “who are worried about stock market volatility”, says Annabel Brodie-Smith, communications director of the Association of Investment Companies (AIC).
That’s because this fund aims to protect your money, focusing on avoiding losses rather than chasing big gains.
It does this by investing mostly in bonds and cash, although it has a small portion in the stock market.
Bonds are essentially an IOU by a company or government. They borrow money from investors for a set period and agree to pay a regular interest payment over that time, and then their original money back at the end.
“When stock markets are struggling, this fund comes into its own,” says Annabel.
Since Liberation Day, the fund is up by 7.4%, turning a £100 investment into £107, and since Covid, it has risen 29%, turning a £100 investment into £129.
F&C Investment Trust
If it’s a long track record you want, look no further: this fund has been around since 1868.
It invests in companies across the globe, including exciting tech names like Nvidia, Apple and Microsoft.
“Importantly, it also invests in lots of other companies and sectors, including financial services, industrials and healthcare, helping investors to spread their investment risk,” says Brodie-Smith.
The fund invests across the US, UK, Japan, China and more, and its biggest holdings include Apple, Mastercard and Meta. Since Liberation Day it has climbed 26.2%, turning a £100 investment into £126, and since Covid is up 127.2%, turning a £100 investment into £227.
Big tech and defence companies could be your best shot
- Michael Field, chief equity strategist, Morningstar
Rheinmetall
This German defence and automotive company has not fared well since the outbreak of the Middle East conflict, but Michael Field, chief equity strategy at the investment research firm Morningstar, thinks that could change.
As national security is thrown into the spotlight amid the current conflict, governments are expected to invest more and more in defence.
That should boost Rheinmetall, which specialises in combat vehicles, weapons, ammunition and security technology.
Rheinmetall shares have fallen 11.5% since Liberation Day last year. However, they have surged an incredible 2,324% since Covid – a £100 investment at that time would be worth a whopping £2,424 today.
SAP
SAP is a leading provider of software that helps companies manage everything from HR and sales to finance and the supply chain.
It has an estimated 440,000 customers across 180 different countries. Worries about the effect of AI on such businesses mean it has been out of favour with investors, but Field thinks those concerns are overblown.
“it remains one of the most prominent stocks in Europe and a key player in the software industry, which should continue to benefit from trends like cloud computing,” he says.
Shares have plunged 35% since Liberation Day, but have risen 50% since Covid – a £100 investment would have grown to £150 since then.
How do I get started?
IF you want to get into investing, then your first step is to open a stocks and shares Isa.
An Isa is an account where any profit you make from your investments is tax-free.
Opening an Isa is easy: select a provider and enter some basic details like your name, address and national insurance number.
There are plenty of apps to choose from, and many let you start investing with as little as £1.
When deciding which one to use, ask friends and family for recommendations and read reviews. Pay attention to the fees that are charged and the range of investments on offer. Some of the most highly rated apps include Lightyear, AJ Bell Dodl and InvestEngine.
Crucially, before you start investing, aim to have three to six months’ worth of outgoings in an easy-access account for emergencies.
Only invest money you can tie up for at least five years. That’s because if the market takes a tumble, your money has time to recover.
Be sure to pay down expensive debt such as loans or credit cards first, as the interest on these can quickly rack up.
