At the Globes’ Israel Business Conference, held recently, significant discussions concerning the future of investing in the evolving landscape of artificial intelligence and other emerging technologies unfolded. The conference featured a panel that included prominent figures in the investment world, such as Anath Levin, Chairman of BlackRock Israel; Liat Hazot, CEO of Hapoalim Equities and Hapoalim Bank; and Limor Becker, managing director of Hamilton Lane in Israel. The conversation, moderated by Shai Shalev, Capital Markets Editor of Globes, focused on market outlooks and investment strategies in light of changing economic conditions.
Levin underscored the necessity for investors to actively engage with trends rather than adopt a “fire and forget” investment approach that relies solely on stock indices. He highlighted that, following the tumultuous impacts of the COVID-19 pandemic, structural changes are evident across economies, notably with aging populations and the global inflationary trend, indicating a need for strategic foresight in investment. "When you look at the long term and look outward, something has happened here from Covid until now," Levin stated, emphasising that the shifts in consumption patterns are integral to understanding future growth potentials.
The Tel Aviv 35 Index's impressive rise of 21% and a 112% increase in Bitcoin prices this year were also noted, leading to speculation about whether it is prudent for investors to exit or remain hopeful for a continued upswing. Levin suggested a careful analysis of macroeconomic trends will be crucial, particularly as ageing demographics and the necessity for infrastructure development converge alongside advancements in artificial intelligence, which requires a vast quantity of data centres and energy.
Becker mentioned that, in the realm of private equity, Hamilton Lane has positioned itself as the largest asset allocator in this sector globally. “We have the privilege of not trying to time the market," Becker remarked. Historical performance data shows that private markets can provide stability even during periods of economic distress, such as the dot-com bubble and the 2008 financial crisis.
Hazot added that as a long-term investor, identifying micro-trends amid broader market peaks is essential. She estimated that after stabilisation in northern Israel, significant opportunities would emerge in sectors such as residential real estate due to persistent supply shortages and heightened demand. The national focus on infrastructure improvements, as Levin discussed, is seen as a critical area for growth and investment.
Levin projected a massive $75 trillion expected to be invested in infrastructure globally by 2030, emphasising the importance of understanding how to manage investment portfolios in this evolving economic landscape. He indicated that given the anticipated changes, the traditional approach of balancing stocks and bonds would no longer suffice.
The panel also highlighted the striking disparity in investment opportunities available to private investors in Israel compared to those in the United States and Europe. Efforts to bridge this gap are ongoing, with Hamilton Lane obtaining significant investments from the US into Israeli high-tech and defence sectors.
With geopolitical stability remaining uncertain, Hazot commented on the potential for foreign investment to surge back into Israeli markets once a calmer environment prevails. Baker corroborated this sentiment, noting substantial investments in Israeli firms even during tumultuous periods, highlighting the resilience and strength of Israel's high-tech sectors.
The Globes Business Conference took place with the support of several prominent organisations, showcasing a collaborative effort to discuss and navigate the complexities of global investment landscapes and their implications for the future. As the discussion elaborated on how businesses could leverage AI and other technologies, it became evident that strategic agility and informed decision-making will be paramount in the years ahead.
Source: Noah Wire Services