February 22, 2024

In times of war and uncertainty, individuals face a dual challenge: dealing with the immediate realities of conflict and navigating their financial future. The economic sphere also experiences turmoil, with fear and paralysis leading to rushed or frozen decisions in wealth management, and erratic market responses – currencies fluctuate wildly, stock indices tumble – mirroring the chaos of the times.

Gerry Livnat, Country Head Israel for Rothschild & Co’s Wealth Management business, discusses the current economic outlook and market dynamics in light of the situation in Israel. Rothschild & Co opened its wealth management office in Israel about a year ago, reflecting a deep-rooted commitment to the region’s growing market and the rapid wealth generation and growth in Israel in recent decades.

During times of crisis, the tendency to make financial decisions driven by fear can be strong. Seeking strategic planning and objective insights, rather than making hasty decisions, is key to understanding market trends and making informed decisions. The latest macroeconomic data suggests ongoing disinflation alongside signs of economic resilience, with a stabilization of interest rates and potentially healthy corporate profitability.

The decision between stocks and bonds is quite nuanced in the current economic climate. While historically stocks may have been favored, the present situation requires a more considered approach. Safe assets such as gold, flight currencies, and certain bonds might appear more attractive during times of uncertainty, but recent market responses suggest a complex and multifaceted reaction to the current economic environment.

Rothschild & Co has over 200 years of experience in the financial markets and emphasizes a focus on sustainable strategies rather than short-term market fluctuations. Keeping an eye on long-term goals and being cautious about reacting to short-term market fluctuations is a prudent approach in rapidly changing environments. This article does not constitute a recommendation or opinion in connection with the purchase and/or marketing of securities, and the authors and/or the Rothschild Bank may have a personal interest in the matter.