Do not panic!

The world is not coming to an end.
What did you expect? For the market to climb forever?

The last two weeks were poor. The market is losing its height and all I hear around me is panic.
No, this is nothing like the 2001 crisis (I hope).
The stock markets climbed rapidly during the last 24 months and it's about time investors claim their profits.
I listen to the analysis of key players in the market, and they say the economy is strong and they see no special reason for these drops in the stock market but two. The one I mentioned earlier (investors claiming profits) and the second one is the interest rates - the higher the interest rates, the more the stock market suffers, and we witnessed several interest changes upwards.

If you are too nervous to cope with the current readjustment of the market, stay out till it climbs back again. It could be tomorrow, next week, next month or next year...
The sooner the better.

Ouch

I feel like I just got a slap in the face telling me to WAKE UP!
Just a few days ago I wrote that I don't get it. I wondered how come the market is rising dispite some supposedly negative events for the economy. And along comes Warren Buffet, the second richest man in the world, and buys the Israeli company "Iscar". This is the largest business deal for an Israeli company ever and Buffet's third largest.
I think it says a lot about the Israeli economy's strength.

Buffet is considering buying more Israeli companies.
Well, I wish him good luck with his last purchase and want to thank him for the slap in the face.
I needed it.

Market, High, Good

I just don't get it...
Last July, before the disengagement plan from Gaza, the stock market was at about 700 points.
The treasury minister resigned, the coalition fell apart, Sharon had a stroke and Israel went to election before the end of the term.
In between, there were suicide explosions, the rise of Hamas as the Palestinian leaders and other bad events that should have badly affected the economy.
And what do you know... the stock market is rising and rising, getting very close to 900 points, currently at the highest point ever.

As the famouse Stevie Wonder song goes: "...I hope my premonition misses...", but I think we are close to dropping back to 810 points.
No special analysis, just a hunch.

I'm back

Ok, where were we?
Oh, yes. I guessed in February that Israel's next government will be a capitalistic one.
I was partially correct.
Avoda - the socialist party, formed a coalition with the winning capitalistic party - Kadima.
All of that is old news, but the main thing (for me at least) is that the treasury ministry stays in capitalistic hands.
The socialist's left wing party took the ministry of defense, which as far as I'm concerned, means more good news.
I see in the near future that we will remove all of the illegal settlements, something investors will like.
Less money will go that ministry (which nowadays gets more than 40% of the budget) and will go elsewhere.

All in all, good news.