August 16, 2012 at 8:00 –While the dynamism of the Israeli economy (EIS, quote) continues to outshine its Middle eastern peers, the looming threat of conflict in the region would destabilize the technology hub. This begs the question: how should investors treat the prospect of war with Iran?
Over the past decade or so, the Israeli economy has developed into a world-beating innovator. With tech sector darlings like Teva Pharmaceuticals (TEVA, quote) and Mellanox Technology (MLNX, quote) revolutionizing a wide array of 21st century sectors from biotechnology to computing, the Israeli economy is one of the most dynamic in the world.
Unfortunately, Israel’s economy cannot be treated as if it exists in a vacuum that obviates the effects of local politics. Because of the country’s history, fraught with unresolved disagreement and conflict with neighbors, the Israeli economy remains exposed to potential national struggles.
Recently Israel has engaged in heated rhetoric with Iran over the latter’s nuclear program and while it remains to be seen whether conflict will materialize, it’s important to evaluate how armed engagement would affect the Israeli economy…Read More>>