From mirage to reality: Bubble growth of Tel Aviv Stock Exchange index with political backing

June 18, 2025 - 17:34

TEHRAN- The Israeli Stock Exchange's TA-125 index has deviated from its long-term average and variance to an unprecedented extent, showing clear signs of the formation of a politically-backed price bubble.

The TA-125 index of the Zionist occupation regime's stock market has moved away from its long-term average and variance to an unprecedented extent, while the regime has engaged in increasingly incendiary actions with the most severe domestic political crises; a situation that shows clear signs of the formation of a price bubble with political backing.

The index has risen from 2,000 to over 2,800 points in the past year, even as the regime grapples with unprecedented military escalation and internal political crisis. This growth raises important questions about its true nature and the possibility of a purely political bubble emerging in the infanticidal regime’s capital markets.

Although parts of the regime's economy, such as defense industries (especially Elbit Systems), have grown due to the conflicts, and the rise in the Occupying Power's stock market index relies more than anything on the sharp increase in defense industry stock prices, there is widespread evidence of serious weaknesses in the regime's economic infrastructure.

Therefore, despite the apparent growth of some indicators, there is ample evidence of structural weaknesses in the economic infrastructure of the Zionist regime.

These include a significant increase in government debt following a surge in military and reconstruction spending, continued foreign capital flight during periods of peak political crisis, especially during disputes related to judicial reforms, and the growth of regional inflation, which has been mainly influenced by ongoing tensions in West Asia and rising global energy prices.

Analysis of the behavior of the TA-125 index shows that a significant portion of the recent growth in this market has occurred not based on economic logic, but rather in conjunction with major political and security events.

These coincidences could be a sign of targeted liquidity injections, political guidance of the capital market, or psychological management of public opinion in times of crisis; a trend that raises serious questions about the sustainability of this growth and the possible formation of economic bubbles.

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