Are funds leaving Israel at the moment and where are the Israelis transferring them?

by time news

“We definitely see an increased interest in the recent period in transferring investments abroad, we recognize a trend of interest in dispersing assets and investments abroad, says Yaacov Shelah, director of the sand activity department at More Case Management, in an interview with Bizportal.

“In general, it is correct to spread investments abroad. This is something that investors have known how to do over the years. There is currently a step up in diversification of investments, this is definitely a trend that is gaining momentum in the last few days or weeks,” he adds, when the logic is that you need to spread your risk globally to reduce the local risk, because you live in Israel anyway.

Where did the money go?
“We recognize that Switzerland has returned to being a destination country for funds. Switzerland is known as a stable country both in terms of governance, also in terms of currency and certainly in terms of the old and established banking that exists there. The Swiss are very dominant in Israel, they appeal to a very affluent clientele and today through investment houses in Israel it is possible to also open accounts The Swiss Bank and get this service even for lower amounts.”

Should you invest in stocks or bonds?
“The multipliers in the stock market are still high, certainly compared to what you can get today in the bond market, which means that currently the compensation received by investing in stocks is low compared to the alternatives. We think that today the bond market is very interesting, the interest rates have gone up and are expected to continue to rise a little. We see that today it is possible to get very nice interest rates on government bonds. For example – a two-year bond in the United States today already gives 4.7%. A ten-year bond is already yielding close to 4%. As a basis for investment, this is definitely a very convenient place to invest. In addition, the Fed interest rate is also expected to reach 5.5%, so the bond environment is currently very favorable for investment. And if you want to diversify the portfolio and also adding elements of strong corporate bonds with high ratings, it is certainly possible to create a very attractive portfolio here.”

Watch the full interview:

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