Israeli Savings Shift Dramatically: Stocks Up, Bonds Down Since 2020

Over the past five years, since 2020, the savings and investment landscape for Israelis has undergone a significant transformation. The proportion of investments held in stocks has surged to 54% of portfolios, indicating a major shift away from other asset classes. Conversely, bond holdings have decreased, reflecting a change in risk appetite and market conditions.

This period saw the defense sector emerge as a particularly strong performer in the stock market, while real estate investments also experienced fluctuations. Specific software companies, despite broader market challenges, have demonstrated resilience, with business results indicating more opportunities than threats for the sector.

Conversely, certain stocks listed on the Tel Aviv Stock Exchange have been significantly impacted, experiencing notable declines. The article also touches upon the potential risks associated with reducing exposure to stocks, especially following downturns in the US bond market.

For those considering moving funds from traditional banks to investment houses, the article suggests potential difficulties. It also briefly mentions other financial topics, including investment in Poland, the S&P 500 index for Israeli investors, and index funds for banking stocks. Additionally, it notes historical fluctuations in the dollar-shekel exchange rate and a high usage rate of a particular app among Israelis, whose blocking caused significant disruption.