It has never been quiet in the political side. In the shadows of political investigation, among them fraud, of several top political figures such as the Minister of Treasury, Mr. Hirshenson, it seems that the stock market has become a different entity. I can see two possibilities for this. The first, is the total indifference investors place upon the influence this current government has on the financial markets. The second, which relates to the first, is that as I said in my previous weekend review, the Israeli market and the US markets are very correlated. Hence, the government has little influence on the performance. This can be seen in the Media when the financial reporters say something along the lines “The investors don’t care what happens in the country and keep investing” with a tone of anger because their lack of understanding.
The TA25 closed yesterday at 968.09, making a nice recovery from last week and a total weekly return of 1.69%! In my last weekend review, I had said that there is no room for panic, and that although the political situation is complex, the Israeli Stock Market has it’s own rhythm, sometimes behaving in its own world indifferent to local news. The investors don’t place too much meaning to the investigations as before, since they are getting more and more used to such news. It will take major breaking news to affect the stock market.
Here is the graph of the last trading week
As you can see, it didn’t look promising in the start of this week. You have to remember though that there was a lot of uncertainty regarding the strike (which ended quickly than speculated) and how it would affect the market. But like always, good things come to those who wait and the reward was soon to follow.
This week in a glance: I speculate that in the long run, the market is rising. No need to panic about noise such as political investigations that in the long run don’t affect the market. The problem is the US stock market. If crisis hits there, the Israeli Market would also be affected.
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