Israel's economy and markets have been broadly fine since the beginning of the Iran conflict. Consumption sentiment has dimmed, but most other economic indicators are solid. And aside from a moderate pullback in the shekel, markets have also "yawned" off regional and geopolitical risks.

But we remain ambivalent on future prospects. Israel is not an external "tiger", the domestic equity market has already rallied sharply in recent years and we have little visibility on the ongoing war.