With a return of up to 15% since the beginning of the year. The new trend of investors

While Wall Street Modi record a negative return from the beginning of the year, those of Europe began to leap. S&P 500 dropped 1.9%, the Tel Aviv 35 index presented nearly 4%, and in the meantime the Eurostox 50 index, which includes the 50 major shares on the continent including Adidas, L’Oreal and Snoopy Pharmaceutical Company, jumped by almost 11%.

And not only the stock exchanges, the local currency, the Euro, is consistently climbing since the beginning of the year and jumped 4% in front of the dollar. At the same time, inflation has not crossed the 3% threshold (at an annual rate) since October 2023, and the interest has been consistently declining 5 consecutive decisions – since July 2024 – up to 2.65%.

Most prominent metrics recorded a double -digit leap (see graph). The German Ducks Index, the first on the list, rose from the beginning of the year to almost 16%. In a sense, the European stock exchanges can thank Donald Trump on the rally. The US President’s Cover reform, and the confrontation between him and Volodmir Zlensky Ukraine President, after three years of war with Russia, made it clear to the European powers that they had to take care of themselves.

A survey conducted by Bank America last month found that estimates that huge budgets would be directed to the security field and investing in infrastructure have led investors to increase their holdings in European shares. Indeed, last week, Kennier Germany announced that he would promote a move to increase security, infrastructure and energy in Germany for more Euro Iran in the coming decade.

Where is it best to invest?

Sagi Sternza, an investment strategy in Bank Leumi’s consulting, explains: “After two very powerful years in the US when technology shares led, there is a disillusionment with the euphoria there (Wall Street), after the election of Trump. Suddenly realize that prices may be its policy, in the form of inflation, for example. “So the European market suddenly seems a little more attractive.

CPA and Attorney Itai Rochekvitz, CEO of the Complex Consulting Company, explains: “The market is pricing a number of positive changes that will support economics and currency status in the world,” Rochekwitz points out. Still, it should be taken in proportion, as growth forecasts are still very low. ”

Sternza agrees: “The German economy is not in a very good condition. It seems that pricing levels are comfortable and the market is cheaper than the United States.” He does recommend examining the investment in the UK. This is because the diplomatic relations between the US and the United Kingdom are better than in front of Europe. So I think the threat is less significant in the British context. It is more likely that a ride will impose cover on the Eurozone. ”

Israelis don’t flock

On the Tel Aviv Stock Exchange, there are 8 active mutual funds, which in oil is mentioned in Europe. Either way, they all showcase a double -digit return from the beginning of the year. The outstanding is an active European shares that rose 15.5% in this time.

In the field of passive mutual funds, which follow European stock indices, there are over 60 funds and are more than NIS 5.4 billion. Here, too, this is a very small share of the assets screen in the field, which amounts to NIS 280 billion. Most of these funds have also recorded it in a double -digit return. And the highlights are the euros 600 euro -euro -europed. Following a measure where the large banks on the continent are included and rose 27.7% since the beginning of the year. Other highlights are the ETFs that follow the German Dex Index, and are not neutralized by a coin that cost 20% – 22% since the beginning of the year.

So is it time for the Israeli investor to enter the European market? Investment executives are divided. “Whenever the European market functions a little better, the questions pop up: Is it time to invest in Europe and what we miss here?”, Says a strumz, but he remains true to Wall Street. “Over time, European metrics show missing the US market. The European market’s sectoral composition is less biased for growth and technology shares, an area where American shares control. European shares are usually characterized by a more traditional economy, such as health, finance and food. Immigration challenges and demographics. ”

What shares may be favorite? Bernard Manor, a BBC investment manager, says that “mainly the security industries will be affected to charge from these events. Among the names of the European security giants is reminiscent of the German security equipment manufacturer, whose share has jumped 85% since the beginning of the year, the French -flying flying systems manufacturer Talles, which increased by 72%, the British Bae Havanica company, which increased by 36% in 2025. By 17%. “These shares enjoyed elevators, partly because of the Russian threat,” Manor emphasizes and on the other hand, recommends staying away from sectors such as energy and industry.

Still, he warns: “The basic data of the European economy is very weak. That’s why the interest rate is still in a decline. Fiscal expansion and also the hope of stopping the war in Ukraine, boils renewed hopes in investors, especially in the German economy.

“The Golden Age of Europe”

Who finds an opportunity for the Israeli investor in Europe is the Azulay era, the main investment manager at Sigma -Claterites Beit Investment. He said, “European shares holes are still reasonable.

Lior Aljam, director of the Discount Bank Securities Department, still prefers the US long -term investment, due to the technology. But seeing opportunities in Germany as well. Those who are expected to enjoy are the security industry. In addition, the iron and metal industries will also receive a back breeze. Because the production of military equipment needs a variety of metals. The security industries are a type of bottom line technology, but not consumer technology. We are also exposed to Europe, but less think you should increase exposure there. ”