Western stock markets are closed on Sundays, but Israel’s exchange is open and its ongoing rally is continuing as the market reaches a new high today.
The kind of punditry where you draw a direct connection between a news event and a stock market rally can get a bit lame. But let’s put it this way. Suppose this deal were the kind of national security disaster for Israel that congressional Republicans are making it out to be—wouldn’t Israeli markets be tanking? One of the neat things about financial markets in this regard is that there’s no percentage in bullshitting. You want to sell sell sell Israeli assets if and only if you actually have reason to believe some bad news about Israel has just hit the wires. In politics, there’s often an upside to bullshitting. Right now, we have a lot of bearishness on Israel from politicians who see gains in painting Obama’s policy as bad for Israel. But in financial markets, we see nothing but bullishness.