Not Business As Usual
by Eric on October 10, 2008
Financial markets are crashing around the world, and it appears Tel Aviv is not amune. The drop there looks quite a bit different than the US freefall, but it still hurts a bit. As a finance graduate, I always say buy on the way down so you can enjoy the ride back up.
This chart shows the Dow Jones Industrial Average value over the last year (in red). The DJIA is the main average used to show the financial health of the US stock market. The TA100 (blue) is made up of the top 100 stocks traded on the Tel Aviv Stock Exchange. It is the premier valuation tool for the Israeli markets as a whole.
There is no real lesson here. It just shows the link between Israel and the world. While the financial mess right now is sad to see, it is good to see that Israel is integrated in the world economy. Too bad it is not fail proof though.
About the author
Eric is the founder and editor of IsraelSituation.com. He has been to Israel many times including a semester at Hebrew University of Jerusalem. He is the former president of the Israel advocacy group at the University of Colorado and teaches about Israel and the Media at a local religious school.
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