While I search for the corkscrew that will allow me to continue the next chapter of Sydney and Omar’s BDS Journey, this story from Bloomberg came across the Divest This console which should be of interest to those who are still curious about the bizarre Harvard BDS hoax that briefly flashed up at the end of the summer.
As an astute Divest This commenter pointed out last May, Israel’s move from being considered a developing to a developed country in the eyes of institutional investors has short-term and long-term consequences. For those clued into finance-speak, the Bloomberg story points out intriguing things that can happen when a country moves from being a relatively big fish in the developing economy pond, to a smaller one in the world of developed nations.
These consequences can include automated sell-offs of Israeli equities by funds chartered to only hold stocks in companies from developing economies, coupled with timing issues regarding how quickly developed-market funds start buying into the newly declared developed Israeli economy.
Over time, economic fundamentals take precedence over shorter-term buy-sell decisions. This means that Israel’s long-term prospects as a country that weathered the recent financial meltdown and is currently diversified into growing industries like energy and biotech will have more lasting positive impact than near-term buy-sell decisions based on Israel’s classification as a developing vs. developed economy.
Most relevant to readers of this site, all of these micro and macro economic matters have Avagadro’s Number more impact on investment and divestment decisions vis-à-vis Israel than does the antics of the so-called BDS “movement.” Which is why they have tried so hard to portray predictable financial decisions that have nothing to do with politics as “victories” for the divestment portion of their program. I would have thought that having gotten caught committing fraud so many times in 2009 they would have avoided such tactics this year, but the Harvard story clearly shows that this is not so.
Given the volatility of Israeli equities in the face of the recent reclassification of the Israeli economy, there is all the more reason to demand that BDSers declaring that so-and-so has done their bidding and divested to stop bothering us until they can make that claim at a joint press conference standing next to the fund managers or college presidents who are allegedly doing the divestment. After nearly two years of hoaxes, it’s the least we can demand from a BDS crew that continues to think everyone (other than themselves, of course) are a bunch of idiots.