Who says that war is bad for the stock market? Israeli investors are pushing up the Tel-Aviv 25 more than 2% today, as traders view the war with Hamas favorably. With last night’s expansion of the war to include thousands of ground troops, tanks and artillery, one would have thought that the TA-25 would have reacted negatively. Clearly market participants believe that Israel will succeed with a swift and total victory, and the renewed security for southern Israel will be a boon for the local economy.

If heaven forbid, Israel were to get bogged down in an urban war, and suffer casualties, I am not sure that the market momentum would continue, but let’s all pray that Israel, is able to destroy the enemy without taking many casualties.

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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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