The past few months have not been an easy time for the stock market in Tel Aviv (TASE). Several members of the senior management team have been asked to leave (or dumped) as performance has dropped off sharply in recent years – even allowing for the global downturn. Last month, a typo saw TASE plunge for a few hours. Not very professional.

Yet suddenly, it is ‘all-change’. Bloomberg has reported that “Israeli stocks are extending their longest winning streak since 2006 as valuations below international peers attract buyers encouraged by Federal Reserve stimulus and efforts to avert a strike on Syria.”

The fact is that the fundamentals are positive.

• The Bank of Israel has confirmed that the fiscal deficit has dropped under 4%. As measured against GDP, it matches most rivals in the OECD.
• Similarly, GDP is expected to reach 3-4% during 2013 and 2014. Again, a very healthy stat on its own and in international comparison.
• And yesterday, the Bank of Israel cut interest rates to 1%.  Although a surprise, this will clearly help to increase the flow of funds towards the financial markets.

TASE is now at “a level last seen in July 2011, and just 6% shy of the all-time high set in April 2011.” It is to be hoped that a revitalised management team in conjunction with a continuance of more sound fiscal policies will enable the Holyland’s stock exchange to produce new miracles for her investors.