"A long-term investment does not turn a concentrated investment into a diversified one": the warning from the senior Bank of Israel official
At the 'Seeing Beyond the Trend' conference by Globes, Lena Krupalnik from the Bank of Israel warned that long-term investment does not diversify concentrated risk. Yaniv Pagot from the stock exchange criticized regulatory barriers that leave investors in the hands of influencers, while Matan Pasternak reassured that AI will not replace investment managers. The speakers expressed cautious optimism about Israel's economy.
At the 'Seeing Beyond the Trend' conference by Globes in partnership with Altshuler Financial, Lena Krupalnik, head of the management department of the sovereign wealth fund at the Bank of Israel, warned that long-term investment does not turn a concentrated investment into a diversified one. According to her, investors add different channels that are controlled by the same risk, such as exposure to AI in data centers, energy and electricity companies, thereby only increasing the portfolio's risk. Yaniv Pagot, deputy CEO of trading at the Tel Aviv Stock Exchange, argued that outdated bureaucratic and regulatory barriers prevent professionals from speaking with retail investors, and the resulting vacuum is filled by problematic influencers. Matan Pasternak, CEO and partner at hedge fund V.R. Capital, reassured that AI will not replace investment managers in the near future, emphasizing the importance of economic fundamentals. Prof. Dan Amiram noted that he is a big believer in passive investment through ETFs. Pagot added that Israel's economy suffers from undervaluation due to geopolitics, but Krupalnik called on the next government to invest in long-term growth.