Despite the problematic economic events in Israel and around the world, excellent investment opportunities have arisen in almost all of Israel's financial sectors, says Israel Infinity group CEO Amir Eyal.
Eyal predicts Israel will be "a paradise for financial investment" in the second half of this year.
Extreme events in the local financial market during the first half of this year created the current situation of high shekel interest rates together with a depressed dollar. Eyal believes this will lead to negligible and even negative inflation in the coming months.
Eyal further forecasts real return on shekel investments will reach 8% to 10%, a particularly high yield. In index-linked instruments, the risk-free return on government bonds will be over 6%, also a particularly high real yield.
"The various investment institutions, including provident funds, will take advantage of, and benefit from these high yields, and will provide relatively high returns in the second half of this year". Eyal predicts that, as opposed to other world markets, the battered Israeli capital market will "make a surprise comeback".
Published by Globes [online] - www.globes.co.il - on 22 July 2002