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December 9, 2016 / 9 Kislev, 5777

Posts Tagged ‘investment’

Surging Overseas Investment in Israel Defy Global Downtrend

Sunday, October 30th, 2016

1. According to KPMG, one of the four largest global auditing firms, Israel has become a leading hothouse for FinTech companies. 9 out of 100 globally-promising FinTech companies are from Israel, an improvement from 8/100 in 2015. One of the Israeli companies, Payoneer digital payments company, raised $180MN on Oct. 6 in a round led by the Silicon Valley-based Technology Crossover Ventures and the Bala Cynwyd, PA-based Susquehanna Growth Equity (Globes Business Daily, Oct. 27, 2016).

2. In defiance of the global financial downtrend – but as a derivative of Israel’s cutting-edge technologies – Israeli hightech companies raised $1.19BN during Q3 2016, the second highest quarterly amount in ten years. During the first nine months of 2016, Israeli hightech companies raised $4BN, 27% above the $3.15BN raised during the first nine months of 2015. However, the third quarter of 2016 has recorded a 24% decline compared with the third quarter of 2015, although the total for September was higher than August (Globes, October 26).

3. Boston Scientifics acquired Israel’s EndoChoice for $210MN (Globes, September 28). Israel’s Ormat Technologies concluded a senior-unsecured-bonds tender for $204MN (Globes, September 11). The NY-based $14BN CA Technologies acquired Israel’s BlazeMeter for $100MN, CA’s 13th Israeli acquisition (Globes, September 22).

4. The $3BN US cyber giant, ProofPoint, acquired Israel’s FireLayers for $55MN, which has become the research and development center of ProofPiont. FireLayers is the third startup developed and sold by its two co-owners (Globes, Oct. 26). eBay acquired Israel’s Corrigon for $30MN, eBay’s 6th Israeli acquisition (Globes, Oct. 7). The Lexington, MA and Dublin, Ireland-based, Shire, a biopharmaceuticals giant, extends its strategic partnership with Israel’s plasma-derived protein therapeutics company, Kamada, which is expected to yield a minimum of $237MN in revenues during 2017-2020 (Globes, Oct. 7).

5. According to Forbes, September 22 issue: “Since 2011, there has been a 50% year-on-year growth of Chinese investment in Israel…. The business relations between Israel and China is growing…. For example, Li-Ka-Shing, the Hong-Kong-based tycoon, has invested – privately and via his venture capital fund, Horizon Ventures – in 30 Israeli companies. China’s $3BN Neusoft IT co-established a $250MN investment fund with Israel’s Infinity Capital Equity Fund, targeting Israeli digital pharmaceutical equipment companies (Globes, September 26). Baidu, the Chinese Internet giant partnered with Israel’s Carmel investment fund, invested in three Israeli companies and opened an office in Israel. China’s Innovative Medical invested $30MN in Israel’s Pluristem (Globes, October 26). About $15BN have been invested in Israel, by Chinese giant companies such as ChemCina (acquired Adama, a crop protection company, for $3.7BN), Bright Food (acquired Tnuva, a dairy producer, for $2.5BN), Fosun (acquired Ahava, a cosmetic producer, for $77MN), Shanghai Giant Network Technology, Alibaba Group founder Jack Ma and additional Chinese investors (acquired Playtika, an online company, for $4.4BN), etc.

Yoram Ettinger

Goldstein on Gelt: What You Need to Know When Making an Investment Decision

Monday, October 10th, 2016

What should you think about when making an investment decision? David Stein, host of the Money for the Rest of Us financial podcast, explains what you need to consider when making decisions about your money. Learn how to measure an investment’s performance, and find out how you should react to a volatile market.
What makes stock values rise and fall, and how should these influence your investment decisions? Doug Goldstein, CFP® explains the influences behind the stock market, and how to respond to them.
If you are concerned about how the upcoming U.S. elections may affect your investments, participate in a webinar “Will the Results of the U.S. Presidential Election Destroy Your Retirement Savings?” Register on the Profile Investment website, www.profile-financial.com

The Goldstein On Gelt Show is a financial podcast. Click on the player below to listen. For show notes and contact details of the guest, go to www.GoldsteinOnGelt.com

 

Doug Goldstein, CFP®

Are You Guilty of Making These Common Investment Mistakes?

Monday, July 25th, 2016

Larry Swedroe, director of research at Buckingham Asset Management, gives tips on avoiding investment mistakes and reviews important financial concepts investors frequently forget.

One common financial mistake people make is giving their adult children too much financial assistance. Doug Goldstein, CFP® asks how much money you give your children, and should this be at the expense of your future retirement? Get tips on what to do if you think you are falling behind with saving for retirement.

The Goldstein On Gelt Show is a financial podcast. Click on the player below to listen. For show notes and contact details of the guest, go to www.GoldsteinOnGelt.com

Doug Goldstein, CFP®

What is the Most Important Part of a Good Investment Strategy?

Wednesday, July 13th, 2016

The most important part of your investment strategy is objectivity.
Relying on your emotions when making financial decisions can damage any investment strategy.

Dr. C. Thomas Howard, co-founder of AthenaInvest, talks about why objectivity should be an important component of your investment strategy. He describes the five emotional triggers that cause the most damage, and why he thinks Modern Portfolio Theory may lead to emotional investing.
However, don’t be discouraged if you do make a wrong investment decision. You can always learn from your mistakes.

This is also an important lesson to teach your children. Find out why it’s a good idea to let your children make financial mistakes… and learn the best way to help them understand the importance of financial responsibility.

The Goldstein On Gelt Show is a financial podcast. Click on the player below to listen. For show notes and contact details of the guest, go to www.GoldsteinOnGelt.com

Doug Goldstein, CFP®

Jordan’s King Dissolves Parliament, Stifles Riots Over Approval of Israeli Investment

Sunday, May 29th, 2016

Jordan’s King Abdullah II dissolved his country’s Parliament by royal decree on Sunday, and accepted the resignation of Prime Minister Abbdullah Ensour.

Reuters reported it was the end of the legislative body’s four-year term. But the move also had the effect of breaking week-long protests, and riots on Friday by hundreds of residents in the ancient city of Petra — a major tourist attraction — where Jordanians allegedly were rampaging over “fraudulent investments,” according to the English-language Jordan Times.

Veteran politician Hani Mulqi was appointed to become Jordan’s new prime minister, and charged by King Abdullah to set up new elections in October.

The decree came barely a week after an extraordinary session in which the Jordanian Parliament voted to allow Israeli companies to invest in the country. At the time, the king endorsed the decision and issued a decree to end the session at the end of last week, according to Albawaba. The vote was considered very controversial and there was widespread public outcry following the session. Specifically, the Jordanian Parliament voted not to exclude Israel from its National Investment Fund.

Originally, last Sunday morning (May 22) Parliament members had voted to exclude Israel from the Jordanian Investment Fund. But in the evening session, a re-vote was called, and the majority of parliament members instead voted to allow Israeli involvement.

“In a particularly shocking turn in the struggle over the new investment law, several vocally pro-Palestine politicians voted in favor of trade with Israel,” Albawaba reported.

“Among them was Rodaina Al Ati, a member of Jordan’s Palestine Committee who has made a name for herself by supporting the Palestinian cause. Jordan’s Arab Progressive Baath Party expelled Al Ati for her vote, and social media users launched a campaign of ridicule and criticism against her.”

The Jordanian Investment Law establishes the Jordan Investment Fund, which oversees development projects and those which foreign funds can invest in. The decision to allow Israel to participate in the fund was seen as a blow to the BDS (boycott, divest and sanctions) movement.

The primary opposition to the monarchy in Jordan is that of the Muslim Brotherhood movement.

However, according to Reuters it was tribal lawmakers who has dominated the last parliament, resisting any change that might have undermined their influence or sabotaged their ability to control the legislative body. The system favors those tribal regions which are sparsely populated and which benefit most from state patronage, and the support of the monarchy, Lebanon’s Daily Star newspaper pointed out.

The reversal of the original decision has provoked outrage in Jordan, inasmuch as it also enables foreign companies to invest in Jordan.

Hana Levi Julian

Aaron Katsman – In Honor of Israel’s Birthday – How to Invest in Israel [audio]

Monday, May 9th, 2016

As Israel celebrates its independence this week, Aaron teaches the listeners how you can invest in Israel. He also gives 3 tips to help you become financially independent.

*If you have any questions for Aaron email him: aaron@lighthousecapital.co.il .

Aaron Katsman Show 09May2016

Israel News Talk Radio

US Investment in – NOT Foreign Aid to – Israel

Monday, May 2nd, 2016

In 2016, Israel is a major contributor to – and a global co-leader with – the USA in the areas of research, development, manufacturing and launching of micro (100 kg), mini (300 kg) and medium (1,000 kg) size satellites and unmanned aerial vehicles (UAVs), as well as joint space missions, space communications and space exploration sounding rocket and scientific balloon flights. According to NASA Administrator, Charles Bolden, “Israel is known for its innovation. The October 15, 2015 joint agreement gives us the opportunity to cooperate with Israel on the journey to Mars, [highlighting Israel’s unique, extremely lightweight technologies, which conserve energy]….”

Israel is no longer a supplicant – as it used to be in its early years of independence – transformed from a net-national security and economic consumer to a net-national security and economic producer, generating substantial, military and commercial dividends to the US, which exceed the highly appreciated $3.1 BN annual investment, in Israel, by the US.

The annual US investment in Israel – erroneously defined as “foreign aid” (Foreign Military Financing) – has yielded one of the highest rates of return on US investments overseas. Israel is neither “foreign,” nor does it receive “aid.”

From a one-way-street relationship, the US-Israel connection has evolved into an exceptionally productive two-way-street, mutually-beneficial alliance. The US is the senior partner, and Israel the junior partner, in a win-win, geo-strategic partnership, which transcends the 68-year-old tension between all US presidents (from Truman through Obama) and Israeli prime ministers (from Ben Gurion through Netanyahu) over the Arab-Israeli conflict and the Palestinian issue.

According to the former Supreme Commander of NATO forces and Secretary of State, the late General Alexander Haig: “Israel constitutes the largest US aircraft carrier, which does not require a single US boot on board, cannot be sunk, deployed in a most critical region to the US economy and national security. And, if there were not Israel in the eastern flank of the Mediterranean, the US would have to deploy – to the region – a few more real aircraft carriers and tens of thousands of troops, which would have cost the US taxpayer some $15 BN annually. All of which is spared by the existence of Israel.”

Israel has been the most cost-effective, battle-tested laboratory of the US defense industries; the most reliable and practical beachhead/outpost of the US defense forces; sharing with the US unique intelligence, battle experience and battle tactics.  Thus, Israel extends the US strategic hand, at a time when the US is experiencing draconian cuts in its defense budget, curtailing the size of its military force and the global deployment of troops, while facing tough international industrial-defense competition and dramatically intensified threats of Islamic terrorism overseas and on the US mainland.

For example, in 2016, Israel’s Air Force, which flies US-made aircraft shares with the US Air Force and the US manufacturers of the F-16, F-15 and additional US aircraft systems, real-time online, daily operational, maintenance and repair lessons, derived from Israel’s daily battle experience, which upgrades US national and homeland security, as well as enhances research and development, global competitiveness, exports and employment base of the US defense industries (e.g., Lockheed-Martin, McDonnell Douglas, Bell Helicopter, Boeing Defense, Northrop Grumman, etc.).

The plant manager of Fort Worth, Texas-based General Dynamics (Lockheed Martin), which manufactures the F-16, asserted that Israeli lessons have spared the manufacturer 10-20 years of research and development, leading to over 700 modifications in the current generation of the F-16, “valued at a mega-billion dollar bonanza to the manufacturer.”  One may conclude that St. Louis, Missouri-based McDonnel Douglas, the manufacturer of the F-15 benefits in the same manner.

Similar lessons have been shared with the US Army, Navy and Marine Corps and the US manufacturers of tanks, armed personnel carriers, missile launchers, missiles, night navigation systems and hundreds of additional military and homeland security systems, manufactured by the US and utilized by Israel. For instance, the Chattanooga, Tennessee-based Northrup Grumman plant, which manufactures explosive-neutralizing robots has increased its exports since Israel’s decision to employ its product, benefitting from weekly telephone conference calls with Israeli experts, who have shared with Northrup Grumman their operational lessons. Israel is to the US defense industry what a triple-A tenant is to a shopping mall – enhancing value and drawing clients.

According to General George Keegan, a former US Air Force Intelligence Chief, the value of intelligence shared by Israel with the US – exposing the air force capabilities of adversaries, their new military systems, electronics and jamming devices – “could not be procured with five CIAs…. The ability of the US Air Force in particular, and the Army in general, to defend whatever position it has in NATO, owes more to the Israeli intelligence input than it does to any other single source of intelligence, be it satellite reconnaissance, be it technology intercept, or what have you.”

A similar assessment was made by the late Senator Daniel Inouye, who was the Chairman of the Intelligence Committee and the Appropriations Committee: “Israel provides the US with more intelligence than all NATO countries combined.”  In July 2003, Brig. General Michael Vane, Deputy Chief of Staff at the US Army Training and Doctrine Command stated that Israel’s counter-terrorism experience shaped the US war on terrorism.

Moreover, US Special Operations units on their way to Iraq and Afghanistan are trained by Israeli experts in tackling suicide bombers, car bombs and the deadly Improvised Explosive Devices (IEDs). Upon arrival at the front, they are assisted by Israeli-developed (and co-developed with the US) unmanned aerial vehicles. Moreover, an Israeli armor plating technology, installed on U.S. military vehicles minimizes US fatalities, and the innovative “Israeli bandage” is employed to stop severe bleeding of injured US soldiers. US bomb squads leverage Israel’s unique counter-terrorism experience, improving their explosives neutralizing capabilities abroad and on the US mainland.

Israel has shared with the US its battle tactics and urban warfare experience, gained during wars against conventional Arab armies and Islamic/Palestinian terrorists.  In 2014, General (ret.) Chuck Krulak, former Commandant of the US Marine Corps, stated: “The US battle tactics formulation, at Fort Leavenworth, Kansas – the intellectual Mecca of the US Army – is based on the Israeli book.”  In 1991, during the First Gulf War, General Krulak fought Russian tanks operated by Saddam Hussein, by applying the 1973 Israeli battle tactics against Soviet tanks employed by Egypt.

In November, 1952, following Israel’s 1948-49 War of Independence, General Omar Bradley, the US Chairman of the Joint Chiefs of Staff, proposed to expand strategic cooperation with Israel, only to be rebuffed by the Department of State, which opposed the establishment of the Jewish State.

However, Israel has evolved into the most effective US strategic beachhead/outpost in the Middle East and beyond, as demonstrated during the 1967 Six-Day-War, when Israel obliterated the Egyptian military, aborting the pro-Soviet Egyptian attempt to topple the pro-US Arab oil-producing regimes, which would have devastated US economic and military interests at a time of high-dependency on Persian Gulf oil.  In 1969, Israel shared with the US its own flare system, which diverted anti-aircraft heat-seeking missiles away from their targets, saving the lives of many gunship pilots during the Vietnam War.

In 1970, Israel’s power projection forced a rollback of the Soviet-backed Syrian invasion of pro-US Jordan, which aimed at toppling the Hashemite regime, and then surging into Saudi Arabia, which would have triggered an anti-US geo-strategic avalanche.

Following Israel’s October 1973 War against the Soviet-armed Egypt and Syria, some 50 US military experts, headed by General Donn Starry, spent six months studying Israel’s battle experience and tactics and the captured Soviet military systems, producing eight thick volumes, which tilted the global balance of power in favor of the US, upgraded the US defense of Europe during the Cold War, enhanced the US air and land battle doctrines during the 1991 Gulf War, and improved the global competitiveness of the US defense industries.

In 1989, 1969 and 1966, Israel snatched a Soviet Mig-23, a most advanced P-12 Soviet early warning radar and ELINT (electronic signals intelligence) system, and a Soviet Mig-21 from Syria, Egypt and Iraq, respectively. All were transferred to the US, evaluated and integrated into the US battle tactics, counter-measures and the defense industrial competitive edge, tilting the global balance of power in favor of the US.

On July 4, 1976, Israel’s Entebbe hostage-rescue operation was a turning point in the battle against anti-US, pro-USSR Islamic terrorism.  In 1981, in defiance of the US Administration, Israel devastated Iraq’s nuclear reactor, sparing the US a nuclear confrontation against Iraq in 1991, and snatching the pro-US Saudis from the jaws of pro-Soviet Iraq.  In 1982, Israel destroyed twenty advanced Soviet surface-to-air missile (SAM) batteries, deployed in Lebanon/Syria and throughout the world, downing 89 Soviet Mig-21s, Mig-23s and Su-20s in the process. Israel proved that the most advanced mobile Soviet SAMs could be jammed, penetrated and destroyed, promptly sharing the battle tactics and electronic warfare innovations with the US Air Force and defense industrial base, providing the US with a significant geo-strategic and industrial game-changing edge over Moscow.  In 2007, Israel destroyed a Syrian-North Korean-Iranian nuclear plant, dealing a blow to global terrorism, sparing humanity the trauma of a nuclear Assad in 2016.

In March, 2007, General John Craddock, the Supreme Commander of NATO, told the House Armed Services: “In the Middle East, Israel is the closest ally of the US, consistently supporting our interests through security cooperation.” Even CNN – which is generally critical of Israel – agreed that Israel’s war against Hamas terrorists advanced homeland security in pro-US Egypt, Jordan, Saudi Arabia and the Gulf States.

A June 2015 strategic agreement intensified cooperation between the air forces of both countries, establishing twelve teams of officers and codifying a widening range of joint annual agendas: operations, battle tactics, training, maintenance, repairs, airborne medicine, flight safety, etc., in the face of mutual threats, joint interests and constrained budgets.  US combat pilots benefit uniquely during joint drills with their Israeli colleagues, who always fly in a “do-or-die” state of mind – a result of Israel’s narrow geographic waistline – which stretches the capabilities of the aircraft to new dimensions and generates more daring and innovative maneuvers, shared with their US colleagues. Recently, Israel’s Air Force developed a ground-breaking method of identifying, repairing and preempting cracks in old combat planes, such as the F-16, and promptly shared that information with the US Air Force and manufacturer. Instead of grounding planes for six months and preoccupying hundreds of mechanics, the Israeli-developed system requires two weeks and only a few mechanics, yielding significant economic and national security benefits.

In 2016, against the backdrop of mounting conventional and terrorist threats, the proliferation of Islamic terrorist cells in the US, the collapse of Europe’s military power projection, the Islamization of Turkey’s national security policy, the erosion of the Western posture of deterrence, and the growing instability, fragmentation, unpredictability and doubtful reliability of pro-US Arab regimes, Israel is the only stable, reliable, predictable, capable, democratic and unconditional ally of the US. Israel constitutes a critical obstacle to the megalomaniacal, Islamic imperialism, enhancing the national and homeland security of the US and its Arab allies. Unlike Europe, Israel is able and willing to flex its muscles.

An Israel-like ally in the Persian Gulf might have dramatically reduced the US military involvement in the Gulf and the Indian Ocean.

The raging, anti-US Arab Street, the melting UN-minded European Street, the commercially and militarily innovative pro-US Israeli Street, and the intensifying threats to global sanity and the US national and homeland security, all highlight Israel’s role as a special strategic partner of the USA – and not a member of the “foreign aid” club of supplicants – increasingly contributing to mutually-beneficial geo-strategic US-Israel joint ventures.

{Yoram will be in the US during May and September, 2016, available for speaking engagements (http://bit.ly/1W5CrSr)}

Yoram Ettinger

Printed from: http://www.jewishpress.com/indepth/us-investment-in-not-foreign-aid-to-israel/2016/05/02/

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