- Israeli stocks, as defined by the BlueStar® Israel Global Index (BIGI®), fell 4.61% in the third quarter of 2023, underperforming US and international developed market equities for the third straight quarter.
- Israeli technology stocks, as defined by the BlueStar® Israel Global Technology Index (BIGITech®), dropped 10.80% in Q3, widening their year-to-date underperformance against US and Global tech peers by more than 15%.
- The Bank of Israel left their policy interest rate in September unchanged at 4.75% which is now 0.65% higher than the rate of inflation.
- Economic activity in Israel remains resilient, though investors should keep an eye on a slowdown in the real estate market and private consumption as long-term interest rates continue to rise.
- As of publication – but after the Review and Outlook was written – Hamas terrorists launched a massive surprise attack on Israel from Gaza, joined by other Iranian-backed terror groups. Israel has declared war to defend its citizens, and the broader regional situation could escalate. We anticipate a major impact on Israel’s economy, as well as on the Israeli Shekel and both the local stock market and Israeli companies listed abroad. Please do not hesitate to reach out to us for updates.