Less lucrative: What did our study funds do in April?

The expectation of interest rate hikes and an inability to assess when inflation will be halted also painted April red for further education funds.

The technology stocks, some of which were also sharply cut by Israeli companies, stood out in their weakness.

Who is the fund that has managed to keep business almost as usual?

Roast Greenberg

18/05/2022

Wednesday, 18 May 2022, 09:29 Updated: 10:02

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share on Email

• Share on general

• Comments

  Comments

The fall in technology stocks in the US along with high inflation and an almost certain probability of rising interest rates in economies around the globe, led the 10 Israeli study funds examined by Walla! Money to end last April with an average negative return of 1.17% -

April continued the negative trend that began Capital markets around the world have been experiencing since the beginning of the year, especially in the background of the Russia-Ukraine war, leading to a

deepening

of the average cumulative negative return of funds since the beginning of the year to 2.13%.

Analyst Investment House, which achieved a negative return of 0.69%, which is 1.62% higher than the last in the table of funds examined - the training fund of Altshuler Shaham Investment House, with a negative return of 2.31% - for the same period.

More on Walla!

The tips that will help you get through your summer expenses safely

In collaboration with ICC

Technology stocks continued to fall, and some Israeli unicorns also stopped galloping.

They will return. (Photo: ShutterStock)

Noam Rokach, VP of Investments at Analyst

, adds: “The declines experienced in April were mainly sponsored by global stock markets.

For example, the US S&P 500 index fell by 5.4% and the Nasdaq index by 9.5%

. "Since the beginning of the year and some even a year ago.

In this respect, some of the large Israeli technology stocks, which have swelled to huge proportions, have shrunk by about 80 percent over the past year.

One example, according to Rokach, is the Mandei company, which is traded on the Nasdaq US Stock Exchange at a value of about $ 4.6 billion, after falling from a record value of about $ 19.4 billion in which it was traded only last November.

"There is a certain sobriety of the markets in terms of technology pricing levels" continues pharmacist "and this has led to the declines in the technology and markets sector.

Performance of study funds in April 2022 (Photo: Walla !, no)

Slowing down, but not recession

The Israeli capital market, however, showed strength compared to its counterparts overseas, with the Tel Aviv 35 index, for example, falling by only 0.2% during that period. Against the US dollar, but apart from the equity channel, other tradable investment channels also continued in a negative trend,

such

as government bonds, which fell against the background of expectations of raising interest rates, which are currently higher than a few months ago.

, And corporate bonds fell by 0.6% over the same period

.

Pharmacist: "Looking ahead, we notice that the markets continue to decline this month (May), and what mainly obscures them today is

the issue of inflation, which provokes central banks to raise interest rates to cool it down.

Problems in supply chains - partly as a result of the coronation of China still continuing in China, and the Russia-Ukraine war that sharply raised the price of oil, agricultural commodities, and some metals

. Ours is that interest rate hikes by central banks will lead to a slowdown in the global economy, even if a real recession is currently not an expected scenario.

Noam Rokach, VP of Investments at Analyst (Photo: PR)

What will happen to technology stocks?

In terms of technology stock companies, we estimate that they will return to trading at the pricing levels at which they were traded about a year ago, and in our view their price levels are now more proportionate, and some would define them as reasonable, for long-term investors looking for growth companies.

Although the Israeli stock market does not have the same amount and character of technology companies as Nasdaq, the level of pricing for the shares of companies from its various fields is estimated to be reasonable, with the estimate that the interest rate in Israel will not reach the level reached by the dollar

. -4% in the last year, while in the US it is already at about 8%.

So even if Israel misses the growth target set by the Bank of Israel at the beginning of the year, the pricing of shares on the Israeli stock exchange is still considered reasonable, and certainly against the bonds

.

• Of money

• consumption

• Financial decisions

Tags

• Hi-Tech

• technology

• stock

• inflation

• interest

• Study funds