Black line: Israel’s TA-125 index. Blue line: S&P500 index, including the US dollar impact.
 Watch me discuss why Israel has performed so strongly on the Rodcast Show with Rod Turner and Adam Lawrence, as we debate markets and latest investment picks. Including India, Bonds, and Israel.
Listen to this episode on the podcast.
Why has Israel Outperformed?
- A strongly performing tech sector has driven solid earnings growth
- This tech sector is at the leading edge of innovation, with companies in Ai and Cybertech
- Israel is the start-up capital of the world
- There’s a strong knowledge ethos with R&D spend being 6% of the economy (global average is 3%)
Risks?
The ongoing tensions in the middle east pose the biggest risk.
BUT … read here about the impact conflicts really have on markets.
What are the repeatable investment lessons we can use?
- Military and geopolitical conflicts introduce fear and dramatic headlines. But historically, they have very limited impact on stockmarkets – see the evidence here
- It’s not a good idea to only own the S&P500 which is down this year (the US$ impact) whereas global markets are up nicely. We warned on this early this year.
- Earnings Growth and fundamentals drive stockmarkets. Not headlines, noise, tariffs, pundits, debt levels etc.
- Markets will grow regardless of reaching new-highs. In 2024, the market made 57 new highs but still rose 20%+
Finally, avoid commonly-taught trading tactics such as stop-losses which force you to sell on dips rather than buy. There are much better alternatives, as my recent video shows.
Always Remember:
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
And …
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
Click here to learn about our Investment Academy
Finally …
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now |
