What's Happening?
Avner Stepak, a key figure at Meitav Investment House, reflects on the financial successes of 2025 and the challenges that lie ahead. Under his leadership, Meitav's stock saw a significant increase, with a 293% return in 2025 alone, and a twelvefold rise over the past three years. Despite these achievements, Stepak emphasizes the importance of looking forward, noting that while Israel's economy is expected to grow by 6% in 2026, the markets have already priced in much of the recovery, leaving little room for error. He highlights a shift in investor behavior, with more young people entering the market and a general resilience among Israeli investors during global market volatility. Stepak warns against short-term trading and advocates for long-term
investment strategies.
Why It's Important?
Stepak's insights are crucial as they highlight the potential risks and opportunities in Israel's economic landscape. His focus on long-term investment over short-term gains is significant for investors looking to build sustainable wealth. The anticipated economic growth in 2026 could lead to increased inequality, which Stepak suggests addressing by reallocating resources from defense to civilian infrastructure. This approach could influence public policy and economic strategies in Israel, impacting sectors like education, healthcare, and transportation. Stepak's emphasis on risk management and public trust underscores the need for responsible financial leadership in both the private and public sectors.
What's Next?
Looking ahead, Stepak's strategy involves focusing on risk management and long-term investment to ensure economic stability. He advocates for reducing defense spending and investing in civilian infrastructure to address potential inequalities. This approach may prompt discussions among policymakers and business leaders about resource allocation and economic priorities. As chairman of Meitav, Stepak will continue to oversee significant financial assets, influencing investment strategies and potentially shaping the broader economic landscape in Israel. His philanthropic efforts also suggest a commitment to strengthening the country's social fabric, which could inspire similar initiatives in the business community.
Beyond the Headlines
Stepak's approach to investment and economic growth reflects a broader trend towards sustainable and socially responsible business practices. His focus on long-term strategies and public trust highlights the ethical dimensions of financial leadership. By advocating for reduced defense spending and increased investment in public infrastructure, Stepak challenges conventional market orthodoxy and emphasizes the importance of addressing social inequalities. This perspective may influence future economic policies and encourage a shift towards more equitable and inclusive growth models.
