Wars are certainly significant events that affect all areas of our lives, including the financial and capital markets. Declining stock prices, rising dollar rates and slowing economic growth are just some of the possible implications for financial markets.
At this time, as we enter the state of emergency in Israel, the bond markets offer relatively high maturity yields, both in Israel and abroad. Other issues that have a possible impact on the Israeli economy are, for example, the inflation rate; The Bank of Israel's interest rate decision in the coming week, after the price index is published; the identity of the next Governor of the Bank of Israel; the impact of the security situation on the profitability of various sectors of the economy; And, of course, the duration of the state of emergency.
At this time, the importance of having an emergency family financial fund is once again rising. Such a fund should be at the level of household expenses for at least six months, and it is desirable that it be invested in solid and liquid channels.
Making investment decisions during an emergency is a challenging task. Investors have to deal with a high level of uncertainty and make decisions under emotional pressure.
Preparation for making decisions to make or not to make a change in the family's investment portfolio should begin with an analysis of the existing situation, that is, by examining the data on the distribution of the overall investment portfolio, both financial and pension, according to the types of investment.
Another examination is of the types of products in the portfolio and their suitability for the household. It is desirable that such an examination, and the resulting decision-making, be carried out with the participation of the relevant household members (for example, spouses, adult children, etc.).
It is desirable that this examination be conducted while avoiding hasty decisions.
* The above should not be construed as investment advice
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