The only country in the Middle East without oil has an economy that’s going like gangbusters, and here’s one reason why:
The Israeli stock market is on a roll. Over the past five years to October 15, the Tel Aviv 100-stock index gained a healthy 29% annualized.
Now comes word that Israel’s market is being called up to the big leagues, which should result in yet a higher profile for Israeli stocks. The FTSE Group, keeper of more than 100,000 stock, bond and hedge-fund indexes, says it will promote Israel from emerging-market to developed-nation status next June. Because more investors buy into developed markets than emerging nations, the change will pump an additional $3 billion into Israeli stocks, estimates Merrill Lynch strategist Michael Hartnett.
I won’t even bother comparing this news to any news coming down the pike from the oil-driven economy nations, awash with even more oil money in these days of record prices. I can’t wait for the day an alternative fuel discovery knocks the bottom out of the oil market. On that day, the economies of the dictatorships, kleptocracies, thugocracies, mullahcracies, and sheikocracies will collapse. Israel’s will remain strong and thriving.
and it’ll probably come from an Israeli hi-tech company…
I’ve often thought that a good way to support Israel might be to invest in Israeli companies. Any gains could just be plowed right back into the market. But then buying stock in an existing company doesn’t really help the company except to boost it’s price a little bit. Which is an okay thing because you’re helping the portfilios of individual Israelis. But I wonder if finding IPOs and investing in those might be a better way.
Anybody know of a program or a website about that?
My employer, Dow Jones Indexes, has included Israel in its Dow Jones Wilshire Developed Markets Index since January 1, 1999. FTSE is late in catching up. There also are many Israeli-based companies currently trading on U.S. markets. Nasdaq publishes a list of the ones it has listed on its web site. Look for the Nasdaq Israel Index.
What a shocker. The Arab League does its best to expel and repress its Jewish communities, and then their economies can’t produce squat.