Capital market expert: How stock market declines create opportunities for investors
While institutional bodies show caution and local stocks take a hit led by the chip sector, a new analysis presents an optimistic angle for investors who believe in the Israeli market and the strengthening of the shekel in the long term.
Or Puria, Chairman of the investment house Puria Finance, conducted a weekly economic review in which he argued that, in complete contrast to the trends on Wall Street, the declines recently recorded by the Tel Aviv Stock Exchange may actually turn into an opportunity for investors who believe in the Israeli market.
"The Tel Aviv Stock Exchange has recorded sharp declines over the last two days, led by chip stocks, which is contrary to the positive trend recorded in most markets around the world. It seems that investors in Israel still attach significant weight to geopolitical risks and are less convinced by diplomatic developments between the USA and Iran," Puria stated.
At the same time, reports of renewed heating up in the region, alongside signs of stabilization in the global chip sector, may create a specific opportunity for investors who believe that the current pricing of the local market reflects an overly pessimistic scenario. This is especially true for those interested in increasing exposure to Israeli stocks at a time when some institutional bodies are taking a more cautious approach, or for investors who assess that the chance of an agreement between the USA and Iran remains low.
In the foreign exchange market, we continue to see relative stability in trading between the shekel and leading currencies, and this trend is expected to continue in the near future. Looking at the medium and long term, there is no change in our assessment that the fundamental economic data of the Israeli economy continue to support the continued strengthening of the shekel against major currencies.
