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Two years ago, Rothschild & Co launched a new representative office in Israel for its Wealth Management business. Since then, numerous clients, including high-net-worth families and tech entrepreneurs who have exited their ventures, have benefited from Rothschild & Co’s services and the group’s extensive experience in managing private wealth. This operation complements the firm’s existing business in Israel, which has been advising on global mergers, acquisitions, and IPOs for over a decade.
“This has undoubtedly been an exceptionally challenging year in terms of the geopolitical situation, and not just in our region. The war in Ukraine continues, and significant elections are looming in the United States,” saysGerry Linvat, Wealth Management Country Head Israel, Rothschild & Co, regarding the current situation, which has sparked widespread concern. “In times like these,” he adds, “it’s important to recognize the resilience of markets, which can often recover and even thrive after major disruptions.”
Rothschild & Co is a family-controlled, independent financial group that has been at the heart of the world’s financial markets for over 200 years. With more than 4,600 financial experts over 40 countries, Rothschild & Co provides its clients with deep market insights and long-term solutions across its Global Advisory, Wealth & Asset Management divisions, and Five Arrows, its alternative assets arm. The Wealth Management business has offices in France, the UK and Channel Islands, Switzerland, Germany, Belgium, Italy, Spain, Luxembourg, Monaco, Dubai and Israel, managing over €120 billion in assets.
“Geopolitical events are very important to us as people, but it’s crucial to remember that their impact on the investment world is more limited — for example, when compared to the business cycle or U.S. interest rates,” Livnat notes. “In the short term, we need to focus on the global economy, the global interest rate cycle, and corporate profitability — the factors that truly drive markets.” He points out that it is still too early to identify a paradigm shift, noting that after the COVID-19 crisis, widespread predictions of mass unemployment and deflation didn’t materialize.
Livnat emphasizes, “During times of crisis, people tend to make financial decisions driven by fear. It’s important to rely on strategic planning and objective insights rather than making hasty decisions based on the immediate situation. This approach is key to understanding broader market trends and making informed choices. Just like life, the economic cycle is cyclical. We were in a positive phase, and now we’re in a negative one, but the positive wave will return, and it’s important to remain patient.”
How do you analyze the current macroeconomic environment?
“People often feel that the global economy is not in a good state, but financial markets are currently experiencing favorable conditions, particularly for bonds and stocks. This is due to a rare combination of declining inflation, alongside continued economic growth. We are seeing this reflected in positive movements in stock prices and, for the first time in decades, bonds are starting to look somewhat attractive.”
What trends are you focusing on currently?
“In equities, we are focused on the U.S., particularly in technology, as well as communications and other sectors that benefit from technological advancements. In the future, we hope to see the market broaden, not only investing in companies that provide technology but also in companies that will eventually benefit from using that technology.”
Are you optimistic about the future?
“Israel has long been recognized as a global leader in innovation and, despite the challenges, I don’t believe this will change. The Rothschild family has always had a long-term perspective, with experience in the financial sector for over 200 years. This long-term view applies to our interest in the Israel market in general and the Israeli high-net-worth market specifically, and we look forward to continuing to build our business and support our clients here for many years to come.”
This article does not constitute a recommendation or an opinion in connection with the purchase and/or marketing of securities of any kind, and/or the execution of other investment operations. It is in no way a substitute for investment consulting and/or investment marketing for those authorized to engage in the said acts, given the data and special needs of each investor. The article does not contain any items that may constitute an offer to purchase stocks. The authors and/or the Rothschild Bank and the wealth management representative of the bank in Israel may have a personal interest in the matter, and/or they may possess the stocks mentioned in the article, in accordance with the provisions of the Investment Advisory Arrangement Law, in marketing Investments and portfolio management, 1995-55.
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