February 20, 2012–Israel, under threat of war from its neighbors since being founded in 1948, produced better risk- adjusted returns than all other developed stock markets in the past decade as the technology-driven economy attracted global investors.
The BLOOMBERG RISKLESS RETURN RANKING shows the Tel Aviv TA-25 Index returned 7.6 percent in the 10 years ended yesterday, after adjusting for volatility, the highest among 24 developed-nation benchmark indexes. Israel beat Hong Kong’s Hang Seng Index, the next-best market with a risk-adjusted gain of 6.7 percent, and Norway, which had the highest total return.
Israel outperformed as it fought a monthlong battle against Hezbollah in 2006, was involved in a similar conflict with Hamas two years later and is now threatened by Iran’s nuclear program. International investors including Warren Buffett bought local companies and the economy, steered by Bank of Israel Governor Stanley Fischer, grew more than twice as fast as the U.S. last year. Israel’s stocks may extend gains as Apple Inc. (AAPL) and International Business Machines Corp. (IBM) acquire the country’s technology startups…Read More>>