Investors Should Focus on Israel

February 1, 2010

The report lists five reasons to invest in Israel:

(1) Resilient economic performance vs. Global Emerging Markets as the local recession [in Israel] ended two quarters ago.

(2) Lack of excess positioning as investors remain underweight Israel [Israeli stock has not been oversold since investors have discouraged buying much there].

(3) Strong currency vs. the USD.

(4) Substantial domestic liquidity support.

(5) Israel’s traditional role as Global Economic Markets beta diversifier [moves at a different pace than other markets].

“We should give thumbs up and a lot of credit to the economic leadership in Israel,” Haim Israel said. “The Bank of Israel and the Ministry of Finance were on top of things. The Bank of Israel was the first [central] bank to decrease [interest] rates, even before the United States, when they understood that we are going into a slowdown. Now the Bank of Israel understands that the economic performance is starting to uptake. It’s time to start increasing rates because there is an inflation environment that is starting to build around the world.”

Excerpts from an article by Adam Gonn, The Media Line

Photo Credit: