The panic in the markets also reaches the public: according to estimates, the volume of redemptions from mutual funds today has reached NIS 1.5 billion, compared with NIS half a billion raised.
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Some of the redemptions were of funds invested in funds only in recent months amid the sharp rises in markets in 2021 and the second half of 2020. The last time the market experienced redemptions of this magnitude was in March 2020 with the onset of the corona plague.
The declines in Europe and the US, along with the tension surrounding the impending conflict in Ukraine and the fear of a Russian invasion of the country, along with the signals of rising interest rates in the US, are driving the declines in the markets and the apparent escape of the public.
The public has made handsome profits in the last two years and many tend to realize those profits, at least in part. The financial statements for 2021 of large companies also suggest that growth is moderating and spur declines and revenues.