This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Falling bonds reduce public's portfolio for third month running

The portfolio of assets held by the general public contracted for the third month running in August, to NIS 1,201 billion.

Figures from the Bank of Israel show that the public's aggregate assets shrank by 0.12% from July, and 1.2% from May of this year, when the aggregate portfolio's value reached its highest value for the year.

Compared with August 2001, however, the public's portfolio increased by 4.7%.

The chief cause of the decline in August were investment vehicles linked to the consumer price index, which dropped by 0.61% versus July, to NIS 456.7 billion. Bonds linked to foreign currency also contracted, by 1.2% to NIS 178.8 billion.

On the other hand, unlinked bonds increased by 1.5% to NIS 363.7 billion.

The drop in CPI- and dollar-linked bonds was due to the dollar's fall against the shekel in August, and the decline in inflation expectations after the interest rate hike in July.

Since August, the dollar has resumed climbing against the shekel, and is nearing its high of last June. The rates of linked and unlinked bonds have both dropped sharply, leading to yields of 5.8% and 12% respectively.

The August figures are therefore unrepresentative of the situation today. The general public's portfolio is widely expected to keep dropping in September because of the steep drop in bond prices.

The composition of the public's portfolio did not substantially change in August. About 30.3% of the public's assets are invested in unlinked vehicles, about the same as at the beginning of the year.

CPI-linked vehicles comprise 38%, compared with 36% at the beginning of the year. Forex-linked instruments rose to 14.9% in August from 13.5%, at the expense of stocks.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs