
The Israeli stock market rose by more than 2% once again.
Can war strengthen the stock market? In Israel’s case, sometimes yes.
Yesterday, the Israeli stock market rose by more than 2% once again.
And this is not the first signal of its kind: at the start of the war, the market also surged sharply, by 4.6%-4.8%.
Can war strengthen the stock market? In Israel’s case, sometimes yes.
Capital does not flow because of war itself. It flows because investors believe the existential threat to Israel may actually be reduced.
When there is a sense that the military alliance with the United States can bring this campaign to a real outcome, the market reacts with gains. When, instead of a clear end, the situation starts to look like a prolonged war of attrition and uncertainty, the reaction is the opposite.
And throughout March, the market showed that as well: after a strong start, there were also noticeable declines.
The willingness to invest in Israel depends directly on the level of risk. Right now, our army is working to reduce that risk.
If we finish the job and remove the ongoing Iranian threat hanging over this country, then together with greater security, there will also be room for strong economic growth.
The key is to finish the job, and not stop once again at another “weakening of the threat.”
