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The Corona bypasses elections

2020-03-01T22:21:09.962Z


Eran Bar-Tal


In general, you can learn from the history of Israel and other Western countries that "after the elections" is a very good time for exchanges.

This makes quite a bit of sense, as explained overseas: Most people chose who a government created, and most people think they voted for it would also do well for the economy, so most are optimistic about the future after the election, so they tend to get more invested in the stock market. In our history, too, this proves, with the exception of exceptional cases, such as the 2009 elections that took place during the great crisis that overshadowed them. If we remove them from the statistics, then in the month following the elections, Israel's leading indices recorded an average increase of 2.5%.

Amir Eyal, CEO of Infinity Investment House, believes that the elections today are exceptional, in that the corona will affect the stock market in the months after the election, more than the results of the election itself. "I think the elections can only improve the situation. If the right bloc establishes a government, the situation will be better for the stock exchange. This will add certainty to the long-term market. Don't see a realistic possibility that the left will form a government, but at the moment the Corona is more influential than the elections. The Corona is a dramatic bypass event. In the worst case, with no definitive decision, the stock exchange will continue to resist as in the previous three systems. "

For further opinions of Eran Bar-Tal

Source: israelhayom

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