The ILS hit 3.79 ILS per USD, a low which hasn’t been seen since 2017:
This is attributed locally to the internal conflict between the government and local groups that are against the laws and policies that are being enacted.
This is not a political blog so I’m not going to get into details, but needless to say, there are issues that need to be addressed and this is causing a lot of uncertainty that has reduced investment from overseas in the country and also taken away business that was in the country. My view as someone that lives here and does not plan on leaving anytime soon, is that these issues will be addressed, and things will go back to normal (which is also complicated, but another kind of complicated). At the end of the day, I’m an optimist.
So why does this matter? Because if you are a foreign investor looking for opportunities, the price of the Israeli market is now on sale at a 15%-20% discount to what it was at the beginning of the year.
Great companies that I’ve researched like Gav-Yam Lands Corporation, Danel, Rimoni, will keep on making money and distributing it to shareholders, like they have been doing for the past 10+ years.
Maybe things will not go right, and Israel will become the next Iran… but if not, it could be a good time to buy some good Israel dividend stocks.
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