Israel – the safest investment in past decade
Bloomberg today published an in-depth review of Israel’s financial and investment accomplishments, lauding it as the safest and most profitable country to invest in in the past decade. The Bloomberg Riskless Return Ranking shows the Tel Aviv TA-25 Index (TA-25) returned 7.6 percent in the 10 years ended yesterday, after adjusting for volatility, the highest among 24 developed-nation benchmark indexes.
Despite two armed struggles in the past decade (with Hezbollah and Hamas) Israel continued throughout to draw international investment and bring impressive returns. Both Apple and IBM recently bought Israeli companies. Warren Buffet, who has invested in a number of Israeli companies, is quoted by Bloomberg as saying, “If you go to the Middle East and you’re looking for oil, skip Israel. If you’re going looking for brains, just stop at Israel. You don’t have to go anyplace else.”
The article also cites Bank of Israel head Stanley Fischer as one of the leading contributors to the stability, as Fischer bought foreign currency for the bank after the Israeli Shekel reached a 12 year high in 2008.
Standard & Poor’s raised Israel’s credit rating for the first time in four years in September, lifting the country to A+.