The financial relationship between Israel and the United States is deeply entwined, with a significant amount of investment flowing between the two countries. Israeli companies are traded on American exchanges, while billions of dollars in investments come from the US to Israel each year. However, there is a potential risk of restrictions being imposed by a hostile American president, which could have serious consequences for both countries.
Israel’s high-tech industry plays a vital role in this relationship, with most profits coming from activities with the US. Any restrictions on investments in Israeli high-tech companies could have significant implications for the sector and the broader economy. In addition, dual-listed companies that trade on both the Tel Aviv Stock Exchange and American exchanges are key players in this relationship, with many tech giants originating in Israel choosing to list on Wall Street rather than in Tel Aviv. Any restrictions on these companies could negatively impact local stock exchange trading activity.
The public in Israel also invests heavily in the US market, with many following major stock indices like the S&P 500. Israeli residents have substantial investments abroad, including in American stocks, bonds, and real estate. Any restrictions on these investments could pose challenges for individuals and financial institutions in Israel, potentially impacting pension and provident funds.
Despite these risks, the economic ties between Israel and the US have a long history and are crucial for both countries. Financial entanglements between them have led to both success stories and challenges over time. However, any disruptions to this relationship could have serious consequences that may not be easily overcome.
Overall, it is important for both countries to approach their financial ties with caution and work towards maintaining open communication channels to ensure continued growth and stability for both economies.
