Israel’s economy will grow by about 3 percent in 2013 as the US and euro bloc
experience a gradual recovery, according to Merrill Lynch Wealth
Recent unexpected geopolitical tension should not cause
Israel any long-term damage, Bill O’Neill, Merrill Lynch’s chief investment
officer for Europe, the Middle East and Africa (EMEA), said Monday at a press
conference in Tel Aviv.
He also forecast that the Bank of Israel will not
raise interest rates soon, especially with the approach of elections in January
and the sensitive political situation.
Turning to strategy, O’Neill said
investors would begin to show more faith in stock markets next year. Merrill
Lynch’s research division believes investors will favor stocks over bonds from
2015 and beyond, he said, as the bull market in bonds comes to an end.