Investing in Israel should be a focus of all Israelis, especially with the erratic behavior seen in other markets around the world. if you’ve been paying attention to markets around the world, you’ll see that the United States is suffering the worst losses since the recession.
Markets are doing so bad in December that they’re on track to have the worst showing in December since the Great Depression. This is the worst monthly showing since 1931, and if another recession does hit, it’s more important than ever to support local businesses and enterprises.
Israeli-oriented portfolios do exist, and it’s possible for Americans to invest in Israel, too. The ITEQ, BlueStar Israel Technology ETF is an option, but it has also suffered losses this year.
There are lots of ways to invest in Israel that don’t involve the stock market. You can forget about all of those trading for beginners classes and make a big impact locally as the stock market continues to fluctuate.
Government bonds are a safe bet, although the returns are very limited. When the economy rises, bonds will be providing less returns. But if a recession occurs, bonds are a much safer investment. The Corporation for Israel Bonds allows investors to purchase bonds in the country.
You can choose to invest in the Tel Aviv Stock Exchange, which has over 400 stocks and makes a smart choice if you want to invest in local, public companies. If you’re in the United States, you can also invest in Israeli firms that are listed on U.S. stock exchanges. There are nearly 100 top firms from Israel listed in the United States.
Real estate investment is an option, but it’s very difficult to invest in areas like Tel Aviv, where even a small apartment can be $500,000 or more. Real estate investment trusts that focus on Israel are an option, and this is a key choice when you don’t have the capital to purchase real estate yourself.
Corporate bonds are heavily used in Israel, and these bonds will provide greater returns than government bonds for slightly more risk. These bonds are often used by larger entities to finish projects, such as shopping malls or solar fields.
If you’re feeling brave, you can also start investing in Israel’s startups. These companies are always looking for venture capital, and they will be the wave of the future for Israel. Keep in mind that the risks are very high, with 95% of startups failing. You’ll want to do extensive due diligence and also realize that a return on your investment may be in the distant future rather than the near future.
Crowdfunding may also help, and this will help many smaller entities raise the money they need to become a success in Israel.
If you’re not looking for a return, you can also start investing by being smarter with your purchases. Make more purchases from Israeli companies, be discerning when you buy products and help support the local companies which are generating jobs and are responsible for Israel’s economic growth.