Israelis Getting Richer By the Day
Written by: Aaron Katsman | July 7, 2008
Aaron Katsman
IsraelNewsletter.com
With global financial markets in turmoil and investors losing trillions of dollars of wealth, who would imagine that in Israel, investors’ financial assets are growing? In a surprising report issued by the Bank of Israel reported by Globes: “Despite global market turmoil and the shekel’s appreciation against the dollar and euro, Israelis’ financial assets grew by an additional NIS 16.5 billion in May 2008 to NIS 2.08 trillion, an all-time high.” This marks an increase of more than 6.5% through the end of May. Giddy up!
This just goes to show how strong the Israeli economy is. I don’t think that this number includes home ownership, and most Israelis are homeowners, so the real amount of wealth, not just financial assets, being created is very impressive. Even as local stock markets get hit, Israelis are just making more money and for a change, saving it. Alongside the US, Israel has a low savings level, so this number points to a potential behavioral change. If markets drop yet financial assets rise it must mean that more and more money is being invested. That increase in savings is a great sign moving forward.
Disclosure: Author’s fund has no position in any stock mentioned as of 7/07/08.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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