The balance of the public's financial assets soared by about NIS 200 billion

The balance of the public's financial assets soared by about NIS 200 billion to a level of about NIS 4.7 trillion, according to data from the Bank of Israel. The increase in the current quarter reflects an annual growth rate of 17.5%, while in the first quarter of the year the public's asset portfolio increased by NIS 129 billion.
The public's asset portfolio includes the public's financial assets in banks, pension savings, mutual funds, study funds and more. The portfolio includes the holdings of households in Israel in cash, deposits, foreign exchange, shares and bonds in Israel and abroad, directly and through institutional entities.
The increase since the beginning of the year, and especially in the second quarter, was significant especially in relation to the annual average in the last decade, which was about 5% and also in relation to 2020 when there was an 8% increase in the public assets portfolio, which reached NIS 4.4 trillion at the end of the year.
The data show that the bulk of the public's asset portfolio is in cash and deposits - which make up 36% of the portfolio. Government bonds and makam constitute 20% of the portfolio; Investments abroad constitute 16% of the portfolio; shares in Israel account for 15% of the portfolio; bonds of tradable companies constitute 7% of the portfolio; And 5% is invested in other assets, including non-negotiable corporate bonds. The data also show that 47% of the public's financial assets portfolio - ie NIS 2.22 trillion - are managed by institutional entities.
The data are a certain indication that the public became rich in the first half of 2021, with the majority stemming from the surge in capital markets at the time. As a result, it is to be expected that private consumption during this period, and in particular larger purchases, will be higher.