Wall Street in Taurus.
Pulled the funds performance upwards.
An unusual month or the beginning of a change? (Photo: ShutterStock)
Inflation in the US is cooling down and after a year of a sharp and painful fall, Wall Street is leading the Israeli training funds to open the first month of 2023 with positive returns, which averaged 2.18%. The leading indices in the US, the NASDAQ and the S&P indices
rose by 10.62% and 6.17% respectively, and the indexes in Europe also reacted with sharp increases, in light of the statements of the central banks in the continent about the end of the interest rate hike trend, which led the German DAX index, for example, to an increase of 8.65%/
. which was previously the strong point in the investment portfolio and even stopped the depth of the negative returns in it, was the weight that prevented it from climbing higher. Thus the TA 35, TA 90 and TA 125 indices, for example, rose by 0.85%, 1.21% and 1.97% only, respectively.
This is in the shadow of a negative atmosphere, whether justified or not, surrounding the expected changes in the judicial system.
Despite those who attribute the weak performance of the local stock exchange mainly to the political controversy, the difficulty of the local stock exchange to join the celebration of the increases is due to a number of other factors, among them the burdensome interest rate on the local real estate companies, alongside its effect on widespread layoffs among the high-tech companies, which are having difficulty continuing to raise funds .
The performance of our training funds.
Will the increases continue? (Photo: Walla! system, no)
In the shadow of the war in Ukraine
And despite all this, the Israeli training funds succeeded this month brilliantly, either due to the moderation of inflation in the US, or as part of the "January effect" anomaly, which is found in research as the tendency of the stock indices (mainly the small stocks) at the beginning of the year to generate an excess return compared to the other months of the year.
The leader of the table for the month of January is the investment house Yelin Lapidot, with a return of 2.59%, which is 0.41% higher than the average achieved by all ten training funds that were examined, and 0.78% more than the return of the top of the table from the bottom - the training fund of the Clal insurance company, which achieved A return of 1.81% for the same period.
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Omer Dagani, VP of Marketing and Sales at the Yelin Lapidot Investment House (Photo: Oded Karni)
Omer Degani, Vice President of Marketing and Sales at the Yilin Lapidot Investment House
: "Yilin Lapidod's advantage in January was due to the allocation (the decision how to spread the money between different types of investment assets) in the portfolio, with exposure of about 70% of the equity component to investments abroad , and mainly to the main stock indices in the USA.
Along with this, we made individual selections of stocks and bonds that served us during the first month of the year, and no less than that, we find that the advantage of Yelin Lapidos stems from the fact that our investment portfolio consists, for the most part, of tradable and liquid assets, while the non-tradable part of the portfolio is relatively small for the industry, and is valued at prices that reflect the current period.
This is in contrast to some other players in the industry, who own non-tradable assets (such as shares in private start-up companies, or funds in investment and real estate funds), whose value does not yet reflect the prices of the current period, and this may be a weight on their performance this year.
We estimate that this will be one of the investment stories that will define 2023.
Looking ahead, it must be remembered that the coming year still depends mainly on inflation developments in the US in particular, and in the world in general, and that alongside it the geopolitical situation in Europe, with an emphasis on the Russia-Ukraine war, and the various challenges in Israel, may have an impact on the market".
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