The word nuclear stirs up all kinds of fears nowadays… Everything from Chernobyl to Iran comes to mind, and the fallout is – in my opinion – mostly political.

So what does it say when nine countries in central and southeast Europe take up the atom?

We’ve heard that China wants to build 30 new nuclear reactors over the next 15 years, and now news has hit the public that Russia will spend $40 billion to boost its nuclear power sector over the next seven years…

But have you heard that Turkey, long-pressed by an energy shortage, has plans to build three nuclear plants? By September 24, it will close the call for bids to build the first nuclear plant in the country.

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If you look at the chart of the Istanbul Stock Exchange your gut instinct is to cut and run. But is that the best strategy for an emerging market with great upside potential?

Like other emerging markets, Turkey is taking it beating from inflation. So far, the government’s policies have kept inflation below 10% — putting it a notch above China.

Let’s face it: inflation is wreaking havoc on all markets, including the U.S. In fact, inflation is probably the biggest cause of volatility in emerging markets today. For investors, that leaves that basically leaves two choices: 1) go into something stable like bonds or 2) get in at the bottom and ride out a market that has the legs for long-term growth.

Turkey’s economic fundamentals tell me that long-term growth is the way to play the Istanbul Stock Exchange. And the best way to get in now is through the ISE National 100 Index. Since it reflects the performance of the Istanbul Stock Exchange, the chart below may lead you think that Turkey is in deep trouble. However, if you discount the effects of inflation, Turkey has the potential to be a good place to put your money for the next few years.

One of the most important aspects of investing in emerging markets is government stability. The largely Muslim nation is on a quest to make important reforms for the 21st century.

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